FTC Files Lawsuit to Block Merger Between Sysco and US Foods
SEAFOODNEWS.COM [Down Jones] by Brent Kendall - February 19, 2015
The Federal Trade Commission on Thursday sued to block Sysco Corp.'s acquisition of rival US Foods Inc., a long-awaited move that sets the stage for a major court battle over a plan to combine the nation's two largest food distributors.
The FTC, in a 3-2 vote, alleged the proposed tie up would create a dominant national company that could raise prices and reduce service for restaurants, hotels, schools and other institutions that buy food, paper products and a wide range of supplies from Sysco and US Foods.
The FTC said the two companies were the only food distributors with a broad national footprint that offered extensive product lines, frequent deliveries and services like menu planning...
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