US: FTC hears opposition to $8.2B food merger

Several US states, along with consumer groups, have reportedly approached the US Federal Trade Commission in opposition of the planned $8.2 billion acquisition of US Foods by its closest rival Sysco.

According to reports, attorneys general from nearly a dozen states argue the deal will harm competition and lead to a company with one-quarter of the US food distribution market. Other critics have placed that market share as high as 35 percent.

Reports say the attorneys general and consumers have met with FTC officials to discuss the transaction.

But Sysco has defended the deal as one that does not affect the national market, only local markets. But, say reports, the merging parties have recognized that the FTC may find some concerns over the deal.

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