US: Sysco – US Foods vs. FTC hearing to begin this week

Sysco and US Foods will face the Federal Trade Commission this week in the anticipated seven-day hearing to mitigate the battle between the two parties over Sysco and US Foods’ planned merger.

The FTC claims the merger would cause significant antitrust concerns and could affect competition in several markets. The FTC is requesting that the the federal judge overseeing the hearing preliminarily block the merger so the commission can conduct its own full trial this summer.

Though the judge’s decision in this hearing would not officially be the end-all for either party, some experts are saying that, indeed, this decision likely will directly affect the final outcome of this skirmish.

According to The Wall Street Journal, “If the FTC can’t win a preliminary injunction from the judge, it will face pressure to abandon its case. And if the companies lose in this initial round of litigation, they would face a long, uphill battle.” Sysco and US Foods fear the ability to last through a trial, so a great deal resides on the judge’s shoulders in this matter.

Full content: The Wall Street Journal

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