Sysco Urges Judge to Save US Foods Deal in Antitrust Duel

Sysco Corp.’s takeover of US Foods Inc. would create an industry “behemoth” in food distribution, eliminating intense head-to-head competition between the companies, a U.S. lawyer said at the start of a courtroom battle over the merger.

The Federal Trade Commission is asking a federal judge to block the $3.5 billion combination, arguing the merger would give Sysco an oversized share in an industry where it’s the biggest player and lead to higher prices for restaurants, hotels, school cafeterias and other customers.