- The Federal Trade Commission believes that a merger between Sysco and US Foods would break antitrust laws, and it has filed an administrative complaint and will seek a court order in an effort to bar that merger.
- According to the FTC's press release, "The FTC also authorized staff to seek in federal court a temporary restraining order and a preliminary injunction to prevent the parties from consummating the merger, and to maintain the status quo pending the administrative proceeding."
- The FTC alleged that if the merger goes through, foodservice customers "would likely face higher prices and diminished service" because of less competition in both the national foodservice distribution industry and 32 local markets.
Since the first announcement of the potential merger more than a year ago, the deal has been surrounded by complaints, controversy, and the companies' attempts to appease regulators. At the end of last year, Sysco offered to sell $5 billion in assets for approval of the merger, and that later became the divestiture of 11 stores. But many still had their doubts about this merger. Now, the FTC's move against Sysco and US Foods "sets the stage for a major court battle," said The Wall Street Journal.