FTC Requests More Documents Tied to Sysco-US Foods Deal

By Annie Gasparro 

Sysco Corp. said the Federal Trade Commission requested additional information on its planned merger with US Foods Inc., formally kicking off the potentially lengthy review of the deal's competitive impact on the food-distribution sector.

The merger, announced in December, would bring together the nation's two biggest food-distribution companies, combined market share of about 25%, and has been expected to receive close government scrutiny.

Sysco Chief Executive Bill DeLaney said the FTC's request was expected, and that the company still anticipates the merger will be completed by the end of September.

"It's not going to go fast, but it's going to be collaborative," Sysco Chief Financial Officer Chris Kreidler said at an industry conference on Tuesday. "We are confident they are going to see what we already see. It is a fiercely competitive industry."

Sysco points to the competition of some 15,000 regional and local food distributors, as well as wholesale outlets, as evidence that its merger with US Foods doesn't pose a threat to its customers or the industry.

The FTC, a five-member body that needs majority support to take action, can bring merger challenges through its own administrative process instead of in federal court, which some have said generates a more laborious process than at the Justice Department.

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