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FTC Considers Challenge to Food Merger

Sysco and US Foods Say Intense Competition Would Remain Their Marriage

The Federal Trade Commission is considering a possible antitrust lawsuit to block the planned merger of Sysco Corp. and US Foods Inc., concerned that combining the nation's two biggest food suppliers to restaurants, schools and other institutions could threaten competition, according to people familiar with the matter.

The FTC, which has been investigating the merger for several months, is weighing other alternatives, such as requiring Sysco and US Foods to divest assets to competitors, these people said.