Judge halts US Food­sSysco tie- up

Los Angeles Times - - COMPANY TOWN -

A court has granted an in­junc­tion tem­po­rar­ily block­ing Sysco from buy­ing US Foods, a deal reg­u­la­tors op­pose be­cause they say it would re­duce com­pe­ti­tion among food sup­ply com­pa­nies.

The U. S. Dis­trict Court for the Dis­trict of Columbia said the Fed­eral Trade Com­mis­sion showed that a de­lay is in the public in­ter­est be­cause the $ 3.5- bil­lion ac­qui­si­tion could re­duce com­pe­ti­tion.

Sysco Corp. said it was dis­ap­pointed and would re­view the rul­ing and con­sider its op­tions, in­clud­ing pulling the plug on the pur­chase.

The FTC chal­lenged the deal in Fe­bru­ary and f iled a com­plaint to stop it. It said Sysco and US Foods are the largest com­pa­nies in their in­dus­try and that com­bin­ing them would likely lead to higher prices for restau­rants, hos­pi­tals, ho­tels and schools.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.