FTC Files To Stop US Foods/Sysco Merger

The Federal Trade Commission filed a lawsuit last week against Sysco on the grounds that its proposal to purchase US Foods violates antitrust laws. Illinois Attorney General Lisa Madigan states, “The loss of competition between Sysco and US Foods would raise costs for their customers and ultimately for anyone purchasing food served at hospitals, schools, hotels and restaurants.”

According to the FTC’s complaint, a combined Sysco-US Foods would have a 75 percent share of the U.S. market for what it calls broadline distribution services, or distributing a variety of food products with frequent and flexible delivery, customer service and other services such as menu planning. Sysco President and CEO Bill DeLaney states, ‘Essentially, we just have a very different view of the marketplace than the FTC does.’

To read more about the potential block on the merger between Sysco and US Foods, click here

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