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FTC to Sue to Block Sysco/US Foods Deal

Proposed distributor mega-merger apparently now on life support.

The Federal Trade Commission has filed an administrative complaint against Sysco Corp. and US Foods, the two largest broadline foodservice distributors in the country, and will seek a federal court order to block their proposed merger. The federal agency claims that the deal would violate antitrust laws by significantly reducing competition nationwide and in 32 local markets for broadline foodservice distribution services.

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