By Annie Gasparro
Sysco Corp. said the Federal Trade Commission requested
additional information on its planned merger with US Foods Inc.,
formally kicking off the potentially lengthy review of the deal's
competitive impact on the food-distribution sector.
The merger, announced in December, would bring together the
nation's two biggest food-distribution companies, combined market
share of about 25%, and has been expected to receive close
government scrutiny.
Sysco Chief Executive Bill DeLaney said the FTC's request was
expected, and that the company still anticipates the merger will be
completed by the end of September.
"It's not going to go fast, but it's going to be collaborative,"
Sysco Chief Financial Officer Chris Kreidler said at an industry
conference on Tuesday. "We are confident they are going to see what
we already see. It is a fiercely competitive industry."
Sysco points to the competition of some 15,000 regional and
local food distributors, as well as wholesale outlets, as evidence
that its merger with US Foods doesn't pose a threat to its
customers or the industry.
The FTC, a five-member body that needs majority support to take
action, can bring merger challenges through its own administrative
process instead of in federal court, which some have said generates
a more laborious process than at the Justice Department.
Write to Annie Gasparro at annie.gasparro@wsj.com
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