HOUSTON, TX – Sysco Corporation has responded to a recent unidentified report which the company says contains "unfounded, inaccurate and irresponsible rumors” regarding the FTC’s review of the proposed Sysco-US Foods merger.
Bill DeLaney, Sysco President and CEO, said, “In light of this recent misleading report, it's important to convey that Sysco continues to cooperate closely with the Federal Trade Commission in its review of the proposed merger of Sysco and US Foods. We are engaged in a productive dialogue with the FTC, and the review is proceeding as expected.”
“We continue to believe that the Commission, once it finishes its investigation, will conclude that our industry is -- and will continue to be -- fiercely competitive. Our proposed merger will benefit customers and help us become more efficient in this rapidly evolving marketplace," DeLaney added.
In December, Sysco announced that it would pay $3.5 billion for US Foods and will assume its $4.7 billion in debt, according to the Houston Business Journal. This merger will give the two companies a combined total of 27% of the market and is expected to receive government scrutiny over competitiveness. For more information on the merger, check out our previous article by clicking here.
The Wall Street Journal reports that in February, Sysco said the FTC requested additional information on the merger. This was the beginning of the potential lengthy review of the deal’s impact on the food-distribution sector.
According to Sysco, this merger will help it trim $600 million in yearly costs and allow for lower prices to its customers.
Stay tuned to AndNowUKnow for more information as this story continues to develop.
