FTC Complaint Shows Why Sysco-US Foods Merger May be Dead
SEAFOODNEWS.COM by John Sackton February 20, 2015
The Federal Trade Commission filed an administrative complaint to block the Sysco - US Foods merger, and in the complaint laid out their reasons for opposing it.
They say that both national and regional foodservice customers overwhelmingly see strong price competition between US Foodservice and Sysco, and they use that competition to leverage lower prices, better deals and higher levels of customer service.
On the national level, the FTC says that if the two major broadliners were to merge, there would be no effective competition for the business of national buyers. No other broadline distributor would have the reach or ability to offer a national program.
The FTC also says that on a regional level, the merger would have the same effect in many large cities....
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