Randy Gordon Comments on Potential Merger of Sysco and US Foods


The Houston Chronicle covered the recent suit filed by the Federal Trade Commission to stop the planned merger of Houston-based distributor Sysco Corporation with its largest competitor, US Foods. The merger, which could affect how much millions of consumers pay for the food they are served in restaurants, hotels, hospitals and school cafeterias, would give the new company 75 percent of national market share and more than half of the market share in 32 local markets.

Gardere Partner Randy D. Gordon, chair of the Firm's Antitrust and Trade Regulation Practice, told the publication: "The fear is, whether this is founded or not, is that the combined entity would be able to charge higher prices and give worse service. The other side of it is that – and I'm sure they'll argue this to the FTC – in fact, combining the entities will save money, and they'll be able to pass those savings on to their consumers."

The full article can be accessed here.

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