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Judge grants FTC request to block Sysco, US Foods merger

Posted June 24, 2015 in Articles | Share

A U.S. judge granted the FTC's request to block a $1.9 billion merger between Sysco Corp and US Foods on Tuesday.  After the announcement, it was not immediately clear if Sysco would appeal the decision. Since the FTC review is a lengthy process, it's likely the deal will be quashed entirely. Sysco CEO Bill DeLaney said the company will take a few days to assess the deal and their obligations, including "the merits of terminating the merger agreement". The judge ruled that the FTC has shown the merger between the two companies could effectively harm the consumer market. The FTC argued that Sysco and US Foods, collectively Number 1 and 2 in the industry, could raise prices from food to cleaning products across the market.