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US: US Foods may back out of merger due to court delays

By  |  May 11, 2015

US Foods executive said in federal court Monday that his company would walk away from its planned merger with rival Sysco if the presiding judge issues an injunction to preliminarily block the deal.

David Schreibman, an executive vice president for strategy at US Foods, told US District Judge Amit Mehta his company isn’t willing to endure additional lengthy periods of uncertainty about its business while engaging in a protracted legal fight with US antitrust enforcers.

The Federal Trade Commission, which spent more than a year reviewing Sysco’s proposed acquisition of US Foods, sued the companies in February. The commission wants Judge Mehta to block the deal preliminarily while it holds a longer in- house administrative beginning in July.

“We will terminate if this court enjoins the transaction,” Mr. Schreibman said.

 

Full content: The Wall Street Journal

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