Sysco Corp. has filed a memorandum opposing the U.S. Federal Trade Commission (FTC)’s attempt to block the company’s proposed merger with U.S. Foods, a deal that could create the largest foodservice company in the country.
Sysco plans to argue the memo in a hearing scheduled to begin on May 5.
"We look forward to presenting all of the facts in court and ultimately, through this merger, delivering better service at a lower cost through a more efficient, innovative and competitive combined company," said Bill Delaney, Sysco
The company, in a statement, said the memo, among other points, stresses the robust competitive environment that already exists in U.S. foodservice.
“Customers of all sizes, including the industry's largest customers, have many options from which to choose, including systems distributors, specialty distributors, cash-and-carry stores and
Sysco has also sold a number of its facilities to rival Performance Food Group
“The proposed sale of facilities in 11 markets to PFG directly addresses FTC concerns that the merger might reduce choice for customers with locations in multiple local markets and regions,” Sysco wrote.
Sysco announced it was making an offer to buy U.S. Foods, its chief rival, in September 2013. In February of this year, the FTC announced it was challenging the merger.