The U.S. State of Minnesota’s attorney general is weighing in on the move by American foodservice company Sysco to buy its rival, US Foods, for USD 3.5 billion (EUR 2.9 billion).
Attorney General Lori Swanson sent a letter, dated 10 December, to the U.S. Federal Trade Commission, which is currently reviewing the merger to make sure it doesn’t violate American antitrust laws. In it, Swanson said she was concerned about the merger, which could create the largest foodservice company in the country.
“A combined Sysco/US Foods would dwarf any rivals, which raises serious questions about the robustness of the competition that would remain in the industry if the merger were to occur,” Swanson wrote.
Both Sysco and US Foods announced the merger in a joint statement in December 2013. At the time, both companies’ boards of directors endorsed the merger, but the commission still must decide whether to approve or block it.
