US: US Foods prepared to drop merger with Sysco

Sysco Corporation , the top food distributor in the US, has claimed that it will exit the merger deal with US Foods Inc. if the court decides to prolong proceedings. The Executive Vice President of Strategy, David Schreibman responded to US District Judge Amit Mehta that his company is not ‘willing’ to endure prolonged periods of ‘uncertainty’ if the legal fight were to extend over longer periods.

The legal fight is with the FTC, the US regulatory body, over the merger deal that US Food Inc and Sysco Corp are pursuing.

Mr. Schreibman proposed that SYSCO Corporation is willing to terminate the deal, if the court were to back FTC’s recommendation to block the deal, ‘preliminarily.’ Over the past year and more and the FTC, has been investigating the acquisition of US Foods by Sysco and had filed against the company in February this year. The Commission has placed a request before the Court to introduce a preliminary stop to the deal, giving it time to conduct in-detail investigation starting in July.

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