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US: FTC considers suing Sysco, US Foods

 |  September 23, 2014

The US Federal Trade Commission is reportedly considering filing a lawsuit to block the proposed merger between Sysco Corp and US Foods, unnamed sources said Monday.

The FTC has been probing Sysco’s plans to acquire US Foods in a $3.5 billion deal after the companies announced their plans in December. The merger would combine the only two food suppliers that reach nationwide, according to reports.

While the FTC is considering a lawsuit, reports say the watchdog is also mulling whether to demand concessions from the companies. Sources said the regulator will decide on its plan of action within the next few weeks.

The merger has raised concerns among consumer advocates and competition authorities that it would lead to higher costs to supply foods to restaurants, hotels and restaurants.

Full content: Reuters

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