The Federal Trade Commission (FTC) filed a complaint on February 19, seeking an injunction to prevent Sysco Corporation’s purchase of US Foods Inc. The FTC alleges that the deal would give Sysco too much market power in that it would control 75 percent of the national market for food and related away-from-home dining supplies. The FTC contends that Sysco and US Foods are the only two “broadline” foodservice distributors with nationwide networks of distribution centers. The FTC further contends that Sysco and US Foods are head-to-head competitors that watched each other’s prices carefully and the merger would significantly reduce nationwide competition for these services.
State attorneys general in the following states joined the FTC’s complaint for a preliminary injunction: California, Illinois, Iowa, Maryland, Minnesota, Nebraska, Ohio, Virginia, Pennsylvania, Tennessee and the District of Columbia.
The hearing on the request for preliminary injunction is set for May 5-8, 2015.