Sysco Closing in on Asset Sales to Win Antitrust Approval
HOUSTON, TX – Sysco Corp. is looking to sell assets to win regulatory approval for its $3.5 billion merger with US Foods Inc.
As we previously reported, the Sysco has been in talks with the U.S. Federal Trade Commission (FTC) to try to save its merger with US Foods from a potential antitrust lawsuit.
A source tells the New York Post that Sysco is currently in advanced talks to sell some of its assets to a food company owned by Blackstone Group to help win that approval. Reuters suggests that this food company is Performance Food.
That source spoke to the Post on the merger saying, “I think it’s going through. All parties are on the same page.”
Reuters is also reporting that aside from Blackstone's Performance Food, Sysco has also been in negotiations with two other food service players, Reinhart Foodservice and Gordon Food Service, to buy assets.
Earlier this month, Sysco announced that its impending merger with US Foods would be delayed as a result of the FTC discussions, but the company is still expecting to complete the merger before the end of the first quarter of 2015.
For now, we will have to wait and see what the FTC decides. Stay tuned to AndNowUKnow for the latest updates on this developing story.
