The season of scrapping mega mergers and acquisitions is at peak in the United States. The government is trying to break all possibilities of monopoly by a particular corporation. The free market economic model, for which the US is known for in the world, has reached its saturation point now. The super corporations are now earning more profits than the entire GDP of some nations on the planet.
To further this agenda, the federal court recently stopped Sysco’s acquisition by the US Foods.. These are known as country’s largest food distribution corporation. The merger between the two would have killed all the potential competition and innovation in the field. Last time, the government stopped Comcast from acquiring Time Warner Cable for the same reason.
The Federal Trade Commission, a government regulatory body sued the Texas based food giant in the month of February. The commission explained how the deal will increase the prices and result in bad service to the customers in schools, colleges, restaurants and eateries. Many experts have congratulated government for taking stand against many other market giants. The AT&T deal was also blocked due to the same reason.
The Federal District Court’s Amit P. Mehta announced the ruling in the Washington D.C. Bill DeLaney, Chief Executive, Sysco informed that he is unhappy about the ruling. He further added that they are exploring other possible options but sources close to the management said that the deal is off. Around 32 markets were expected to be affected by this monopolistic practice.