Exclusive: Minnesota AG says 'questionable' that divestiture in Sysco deal for U.S. Foods are enough

Reuters News
Posted: Dec 15, 2014 12:07 PM

WASHINGTON (Reuters) - Minnesota's attorney general has expressed concern about the merger of food distribution giants Sysco Corp and US Foods [USFOO.UL], saying it was questionable whether any divestiture could restore competition lost to the transaction.

Minnesota Attorney General Lori Swanson said in a Dec. 10 letter that her office had heard complaints from Minnesota-based restaurants that the $3.5 billion acquisition would leave them "fewer choices among distributors and potentially resulting in higher prices for consumers."

The letter was addressed to Federal Trade Commission Chairwomen Edith Ramirez, and also sent to other commissioners. The FTC is probing the deal to ensure it complies with antitrust law.

(Reporting by Diane Bartz)