On June 23, the Federal Trade Commission (FTC) won a favorable ruling when a federal judge granted its request for an injunction to stop Sysco from acquiring U.S. Foods. According to an article in Policy and Regulatory Report, the two companies constitute the “sole national U.S. broadline food distributors,” and Judge Amit Mehta of the U.S. District Court for the District of Columbia blocked their merger on the grounds that “the transaction was likely to harm competition.”
Richard Wegener, Faegre Baker Daniels counsel, said that the FTC victory naturally gives regulatory agencies more credibility.
“Any time the government wins, it provides additional backbone for the government in investigating future mergers,” Wegener said. “It makes them stronger in negotiating with merging parties.”
The complete article is available to subscribers.