According to an article from The Street, an antitrust watchdog group recently warned that Sysco's $8.2 billion proposed acquisition of US Foods may create a monopoly among institutional food distributors.
The American Antitrust Institute warned that the merger will combine the only two national broadliners and cause consolidation in the supply chain, thus eliminating competition between major rivals and creating barriers for smaller or alternative food systems, the article said.
"Adverse effects could be felt at any number of stages in the food supply chain, raising concerns about prices, food quality and safety, innovation and choice," according to AAI's analysis.
Read the article.
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