A PYMNTS Company

US: Sysco warns merger tied up in review process

By  |  November 3, 2014

Sysco Corp said Monday in its quarterly report that it does not expect to complete its planned takeover of rival US Foods by the end of the year thanks to ongoing regulatory reviews.

According to reports, Sysco confirmed it is still in discussions with the US Federal Trade Commission to complete its $3.5 billion acquisition, first announced last December. The deal would merge the nation’s two largest food distributors.

In recent months, some advocates have called for the FTC to block the deal on grounds it would allegedly lead to higher distribution prices for restaurants and hotel chains. Sysco and US Foods are the only two competitors with national food distribution reach, according to reports.

The companies had initially expected to close the deal by October.

Full content: Reuters

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