Sysco Files Objection to FTC's Move to Block US Foods Merger; Says Deal Boosts Industry Competition
SEAFOODNEWS.COM [The Wall Street Journal] by Angela Chen - April 22, 2015
Sysco Corp. has filed a memorandum opposing the U.S. Federal Trade Commission's attempt to block its proposed $3.5 billion merger with US Foods.
The company filed the memo Tuesday in the U.S. Federal District Court for the District of Columbia. It claims that the merger, which the FTC has said might violate antitrust regulations, actually makes the food-service industry more competitive.
Sysco says that local markets are highly competitive and the “FTC's flawed logic on the structure of the local food-service distribution market led to dubious analysis of market share." For example, the FTC claims that the combined company would control all the market share in San Diego, but more than 24 companies compete in the area...
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