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Report: Regulators "Skeptical" About Sysco/US Foods Merger

The long-delayed mega distributor deal may face more pushback.

The proposed merger deal between Sysco Corp. and top competitor US Foods faced more potential hurdles following a meeting between company representatives and regulators from the Federal Trade Commission (FTC) that left the latter "skeptical," according to a report in the New York Post. The Wall Street Journal reported that Sysco executives at the meeting did not propose further moves to allay antitrust concerns beyond the already announced spinoff of 11 US Foods facilities to Performance Food Group if the deal is approved.

The five FTC commissioners were expected to take a vote on the mattter on the afternoon of February 12th. The result of that vote could be anything from approval of the deal to a lawsuit to block it.

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