US court blocks foodservice merger

A U.S. federal judge has blocked a multibillion-dollar proposed foodservice company merger between Sysco and U.S. Foods.

Sysco announced in December 2013 that it planned to buy its rival for USD 3.5 billion (EUR billion), but such a move would create the largest foodservice company in the country. The move triggered an examination by the U.S. Federal Trade Commission (FTC), which in February 2015 challenged the merger, saying it would violate antitrust laws.

In a statement, Debbie Feinstein, director of the FTC’s Bureau of Competition, acknowledged the judge’s ruling is only to temporarily block the merger, but she praised the ruling.

“The Court's ruling today temporarily blocking Sysco’s proposed acquisition of US Foods will preserve competition in both local and national broadline foodservice distribution markets,” Feinstein said. “We look forward to proving at trial that this deal would lead to higher prices and diminished service for customers, including restaurants, hospitals, hotels, and schools.”