Food service giant Sysco Corp. has agreed to sell 11 US Foods facilities to Performance Food Group. The divestiture is related to Sysco’s pending merger with US Foods, and the sale is contingent upon the completion of the merger.
Sysco said Federal Trade Commission has not yet agreed to the divestiture as a solution to commission’s concerns. Sysco and US Foods plan to present its position, including the divestiture plan, to the FTC and seek to obtain the commissioners’ approval. The majority of the five commissioners must approve the transaction.
“Over the past 12 months, we have worked in good faith with the FTC to help them better understand the highly competitive US foodservice distribution industry and the significant customer benefits that will result from the merger of Sysco and US Foods,” said Bill DeLaney, Sysco president and CEO. “Unfortunately, the FTC has taken a different view of the potential competitive impacts of the merger. While we respectfully but vigorously disagree with the FTC’s analysis, we believe this divestiture package fully addresses its concerns.”
Sysco will now present the package to the regulator and seek its approval.
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
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
Car Battery Makers to Challenge EU Cartel Charges in Brussels
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