Foods — Sysco Buys Us

Sysco believed the merger was a necessary step for modernization and better customer service, while opponents feared massive concentration. 2. Regulatory Opposition (FTC)

The court found that the merger would eliminate head-to-head competition between the two biggest industry players. Furthermore, the judge argued that smaller competitors could not match the scale and service capabilities of the combined Sysco/US Foods. sysco buys us foods

On June 23, 2015, Judge Amit Mehta granted the FTC’s request for a preliminary injunction, effectively blocking the merger. Sysco believed the merger was a necessary step

Sysco and US Foods were the top two broadline food distributors in the US, specializing in supplying food and supplies to restaurants, hospitals, schools, and hotels. Furthermore, the judge argued that smaller competitors could

On February 19, 2015, the FTC sued to block the merger, arguing it violated antitrust laws.

The complaint alleged that restaurants, hotels, and schools would face higher prices and lower quality service due to the lack of competition.

Including litigation and planning, the failed merger cost Sysco approximately $693 million.