Sysco Buys Us Foods File

Sysco proposed selling 11 US Foods distribution centers to Performance Food Group (PFG) to appease regulators. The FTC rejected this, stating it would not allow PFG to effectively replace US Foods as a competitor. 3. Legal Proceedings and Ruling

Sysco believed the merger was a necessary step for modernization and better customer service, while opponents feared massive concentration. 2. Regulatory Opposition (FTC) sysco buys us foods

Sysco paid a $300 million break-up fee to US Foods and an additional $12.5 million to PFG. Sysco proposed selling 11 US Foods distribution centers

The court found that the merger would eliminate head-to-head competition between the two biggest industry players. Furthermore, the judge argued that smaller competitors could not match the scale and service capabilities of the combined Sysco/US Foods. sysco buys us foods