The where competition was most heavily impacted. How US Foods performed after staying independent. Judge Explains Reasons for Blocking Sysco-US Foods Merger
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
The FTC estimated a combined entity would control 75% of the national market for broadline distribution services. The where competition was most heavily impacted
Sysco officially abandoned the merger on June 29, 2015. Furthermore, the judge argued that smaller competitors could
On June 23, 2015, Judge Amit Mehta granted the FTC’s request for a preliminary injunction, effectively blocking the merger.
Sysco proposed selling 11 US Foods distribution centers to Performance Food Group (PFG) to appease regulators. The FTC rejected this, stating it would not allow PFG to effectively replace US Foods as a competitor. 3. Legal Proceedings and Ruling
Including litigation and planning, the failed merger cost Sysco approximately $693 million.