FTC Considers Challenge To Sysco, US Foods Merger

The Federal Trade Commission is considering a possible antitrust lawsuit to block the planned merger of Sysco Corp. and US Foods. The FTC, which has been investigating the merger for several months, is concerned that combining the nation’s two biggest food suppliers to restaurants, schools and other institutions could threaten competition. Sysco announced plans in December to buy US Foods for $3.5 billion. The combined companies would make up more than 25% of the $231 billion U.S. food-distribution industry. The next largest competitor, Performance Food Group Co., would be one-fifth the size of the proposed merged firm.