US: Sysco files memo opposing FTC block of merger

Sysco has filed a memorandum opposing the US Federal Trade Commission’s attempt to block its proposed $3.5 billion merger with US Foods.The company filed the memo Tuesday in the US Federal District Court for the District of Columbia. It claims that the merger, which the FTC has said might violate antitrust regulations, actually makes the food-service industry more competitive.

Sysco says that local markets are highly competitive and the “FTC’s flawed logic on the structure of the local food-service distribution market led to dubious analysis of market share.” For example, the FTC claims that the combined company would control all the market share in San Diego, but more than 24 companies compete in the area.

“We look forward to presenting all of the facts in court and ultimately, through this merger, delivering better service at a lower cost through a more efficient, innovative and competitive combined company,” Chief Executive Bill DeLaney said in a news release.

Full Content: The Wall Street Journal

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