Federal Judge Amit Mehta Says No to Sysco's Merger with US Foods

Federal Judge Amit Mehta Says No to Sysco's Merger with US Foods

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WASHINGTON, D.C. - After nearly a month of deliberation, a verdict has finally fallen in the case of the Federal Trade Commission’s (FTC) attempt to block the merger between Sysco Corp. and US Foods, and the law has spoken in favor of the FTC.

Judge Amit Mehta, U.S. District Court for the District of Columbia (Photo Credit: Legal Times)"The FTC has shown that there is a reasonable probability that the proposed merger will substantially impair competition in the national customer and local broadline markets, and that the equities weigh in favor of injunctive relief," Judge Amit Mehta, U.S. District Court for the District of Columbia, said in a brief opinion, according to a report from Reuters.

The decision, which was announced yesterday afternoon, did not appear to be made lightly. As we previously reported both sides made their closing statements in an already extended trial on May 28th.

The FTC filed the antitrust lawsuit in February after voting that the union of the two largest food distributors in the nation would minimize the margin for competition in the market.

Though it looks as if the matter has been put to rest by Judge Mehta’s decision, the Reuters article stated that it remained unclear if Sysco would appeal the ruling. US Foods did previously state that any further injunction to prevent the deal would result in its backing out of the merger entirely, but neither side has made any definitive comments since the case’s resolution in court.


Companies in this Story

US Foods

US Foods is one of America’s leading foodservice distributors to restaurants, healthcare and hospitality facilities,…


Sysco is the global leader in selling, marketing and distributing food products to restaurants, healthcare and…