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Old 12-09-2013, 09:39 PM
 
Location: NJ
18,677 posts, read 16,438,494 times
Reputation: 7274

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http://dealbook.nytimes.com/2013/12/...-billion/?_r=0

This deal will result in tons of lost jobs. Many reports referred to synergies amongst them, which is the pc way to say "We have 2 departments doing the same thing. We need just one".


Still a 25% market share is not enough to deep six the deal, and it should be allowed to proceed.
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Old 12-09-2013, 09:50 PM
 
4,707 posts, read 3,338,366 times
Reputation: 4412
You're right. These deals ALWAYS result in job losses, and these are two BIG companies.
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Old 12-10-2013, 03:58 AM
 
Location: Where they serve real ale.
7,249 posts, read 6,408,261 times
Reputation: 3497
The problem is those are the two largest pre-packed food distribution companies in the country and the only two with national scope. You can bet your bottom dollar prices for restaurants WILL go up once Sysco eliminates their main rival.

The biggest problem in this country today is that we have stopped enforcing anti-trust laws.
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Old 12-10-2013, 10:19 AM
 
Location: USA
13,266 posts, read 9,991,830 times
Reputation: 4228
Pretty interesting stuff. I do some work in the meat processing industry. There's been other consolidations in the industry as well by some of the smaller packers.


The industry just seems to be following the trends of every other industry. Huge conglomerates control most of our markets and the brands that you see in stores. I'd say that about 80% of the brands you see in stores in any given category are controlled by a handful of conglomerates. I put together consumer reports detailing brand presence, etc.


Sysco actually seems like a pretty good company. They do a lot with smaller distributors and even minority businesses. They also seem to be pretty fair in pricing.
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Old 12-10-2013, 10:20 AM
 
25,060 posts, read 22,101,322 times
Reputation: 11576
Quote:
Originally Posted by Think4Yourself View Post
The problem is those are the two largest pre-packed food distribution companies in the country and the only two with national scope. You can bet your bottom dollar prices for restaurants WILL go up once Sysco eliminates their main rival.

The biggest problem in this country today is that we have stopped enforcing anti-trust laws.
But but but, the free market
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Old 12-10-2013, 10:21 AM
 
Location: Great State of Texas
86,093 posts, read 69,881,813 times
Reputation: 27519
The small guys can't grow due to complex and costly regulations.
The big guys are swallowing each other up creating monopolies.

Take a quote from Highlander….

"In the end there can be only one"
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Old 12-10-2013, 10:22 AM
 
Location: Great State of Texas
86,093 posts, read 69,881,813 times
Reputation: 27519
Quote:
Originally Posted by theunbrainwashed View Post
But but but, the free market
There is no "free" market.
Costly and complex regulations provent the small guys from becoming tomorrow's competition.
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Old 12-10-2013, 10:30 AM
 
Location: USA
13,266 posts, read 9,991,830 times
Reputation: 4228
Quote:
Originally Posted by HappyTexan View Post
The small guys can't grow due to complex and costly regulations.
The big guys are swallowing each other up creating monopolies.

Take a quote from Highlander….

"In the end there can be only one"
Quote:
Originally Posted by HappyTexan View Post
There is no "free" market.
Costly and complex regulations provent the small guys from becoming tomorrow's competition.
I agree with ya HappyTexan.


Especially in industries where there is a lot of overhead.

The people always yelling, "Go start your own business..." usually haven't started a business before. Or if they did, they had a lot of help in getting things going (excess cash, competitive advantage, etc).



It takes a ton of hard work, a great product or service, and a little luck to be successful in today's business world.
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Old 12-10-2013, 10:58 AM
 
Location: Houston
20,984 posts, read 10,618,862 times
Reputation: 8211
Quote:
Originally Posted by theunbrainwashed View Post
But but but, the free market
Give the free market a chance. I predict no price increases beyond the norm.

If jobs are eliminated it means in the long run (probably before we are all dead) prices will be lower than if the deal had not gone through.
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