February 24, 2015

FTC blocks Sysco-US Foods merger

The Federal Trade Commission (FTC) filed a lawsuit challenging the merger of Sysco Corp. and US Foods. The Commission voted 3-2 to issue the administrative complaint and to authorize staff to seek a temporary restraining order and preliminary injunction in federal district court. The FTC files a complaint when it has “reason to believe” that the law has been or is being violated. The Commission believes the Sysco-US Foods merger would raise prices for foodservice customers, including restaurants, hospitals, hotels and schools. FTC said foodservice customers also would likely faced diminished service.

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