Court delays Sysco-US Foods deal
The U.S. District Court for the District of Columbia granted an injunction blocking Sysco from buying US Foods until legal proceedings are resolved. The Federal Trade Commission (FTC) opposed the deal, saying it would reduce competition between food supply companies. Sysco Corp. said it is disappointed and will review the ruling and consider its options, including pulling the plug on the purchase. The FTC said it looks forward to proving its case at trial.
Sysco and US Foods are the largest companies in their industry. In December 2013, Sysco announced its plan to buy US Foods, but the FTC must approve the deal. The agency filed a complaint in February to halt the sale. Sysco and US Foods agreed to sell 11 food distribution centers to address concerns, but the FTC wasn’t satisfied.
Source: Associated Press