WASHINGTON--After a brief period of uncertainty, U.S. antitrust
regulators have sorted out which government agency will review
Sysco Corp.'s merger with US Foods Inc.: the Federal Trade
Commission.
The FTC shares antitrust authority with the Justice Department,
and it isn't always clear which agency will take the reins in
reviewing any given merger or acquisition. Each agency has
expertise in certain sectors of the economy. Both have experience
with food matters.
The Sysco-US Foods merger, announced in mid-December, would
bring together the nation's two biggest food-distribution companies
and is expected to receive close government scrutiny. Sysco has
said it expects the regulatory review to take nine to 12
months.
A Sysco spokesman Friday confirmed the FTC will handle the
review. An FTC spokesman declined to comment.
The FTC and Justice Department have different processes for
handling merger investigations, which potentially can affect the
manner and pace of the government review.
While the Justice Department has one final decision maker, the
FTC is a five-member body that needs majority support to take
action. The FTC also can bring merger challenges through its own
administrative process instead of in federal court. The Justice
Department doesn't have an administrative option.
Many antitrust lawyers consider the FTC process more laborious.
However, observers believe the Justice Department has been more
aggressive on merger challenges in recent years.
Write to Brent Kendall at brent.kendall@wsj.com and Annie
Gasparro at annie.gasparro@wsj.com
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