The US government filed a lawsuit on Thursday seeking to block a merger of the nation’s two largest food distributors, US Foods Inc and Sysco Corp, which said it will fight the Federal Trade Commission.
Sysco and US Foods unveiled their $3.5 billion deal in December 2013. It was controversial becausethey are only two companies in their industry able to offer truly nationwide contracts to deliver food and other supplies to customers.
Before Thursday’s announcement, Sysco had hired law firm O’Melveny & Myers LLP as its counsel for a fight with the FTC.
“This proposed merger would eliminate significant competition in the marketplace and create a dominant national broadline foodservice distributor,” Debbie Feinstein, director of the FTC’s Bureau of Competition, said in a statement.
The FTC said in its statement that the divestiture offer was inadequate.
Full Content: The New York Times
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Senate Democrats Urge DOJ Investigation into Alleged Big Oil Collusion
May 30, 2024 by
CPI
ConocoPhillips Acquires Marathon Oil for $22.5 Billion in Major Energy Sector Consolidation
May 29, 2024 by
CPI
Judge Denies Amazon’s Bid to Dismiss FTC Lawsuit Over Prime Membership Practices
May 29, 2024 by
CPI
Germany and France Advocate for Major EU Competition Reform
May 29, 2024 by
CPI
Equifax Accused of Monopolizing Employment Verification Market in New Suit
May 29, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Merger Guidelines Retrospective
May 21, 2024 by
CPI
Mergers of Complements
May 21, 2024 by
CPI
Personality Traits, Private Equity, and Merger Analysis
May 21, 2024 by
CPI
The 2023 Merger Guidelines: Lessons in the Importance of Incipiency, Modern Economics, and Monopsony
May 21, 2024 by
CPI
The 2023 Merger Guidelines: Sharpening Merger Analysis
May 21, 2024 by
CPI