The American Antitrust Institute (AAI) today applauded the Federal Trade Commission (FTC) for challenging the proposed merger of broadline food distributors Sysco and US Foods. "Kudos to the FTC for taking a stand to block this deal,” said AAI President Diana Moss.
The Complaint, issued today, lays out in detail how the proposed combination would harm competition and consumers, both on a national level and in a number of regional markets. Notably, the Complaint explains how proposed divestitures are inadequate to restore competition lost by the merger. The AAI has advocated against the proposed merger since it was proposed, starting with a letter to the FTC in February 2014.
"We are impressed on two counts," said Moss. “The FTC has recognized that not all deals can be fixed, and the Commission is moving to protect competition in our critical food supply chain, which has suffered from undue concentration and 'domino-like' consolidation."