US Foods and Sysco $8B Merger May Be Delayed Again
HOUSTON, TX – Sysco’s $8.2 billion US Foods merger appears as though it is being delayed again.
The New York Post is reporting that the Federal Trade Commission (FTC) has sent a subpoena to a third-party food distributor asking for information.
This news comes after Sysco agreed to sell assets worth $5 billion to Performance Food Group last month in an effort to win regulatory approval for the FTC. That amount is equivalent to approximately one-quarter of US Foods’ revenue.
This proposed merger will combine the top two U.S. food distributors and would create a company with a quarter of the $235 billion North American market.
Sources tell the Post that this new subpoena means the review of the December 2013 merger “is not done.”
The source added, “I think it’s shockingly unclear” whether the FTC is preparing to clear the merger, or wants more information so it can sure to block the deal.
The company expected to complete the merger before the end of the first quarter of 2015, but for now, questions remain. Stay tuned to AndNowUKnow for continuing updates.
