US Foods EVP David Schreibman Says He'll Terminate Merger if Court Delays Any Longer
WASHINGTON, D.C. - In federal court Monday, US Foods Executive Vice President David Schreibman admitted that the company will walk away from the Sysco merger if the court decides to further delay the companies’ plans.
The Wall Street Journal reports that Schreibman told U.S. District Judge Amit Mehta his company will not endure any continued uncertainty about the merger while engaging in this legal fight with U.S. antitrust enforcers.
As we’ve previously reported, the Federal Trade Commission has sued both Sysco and US Foods over the proposed merger, citing concerns that the combined companies would create a monopoly.
Also during Monday’s proceedings, top executives from both companies testified in an attempt to rebut the FTC’s case, including Sysco CEO Bill DeLaney. DeLaney spoke for two hours, disputing the FTC’s claims that Sysco could target customers for price increases if it is allowed to acquire US Foods, The Wall Street Journal reports.
“It would be a very stupid thing to contemplate,” DeLaney argued to Judge Mehta.
DeLaney continued that the company’s acquisition of US Foods would, if anything, help cut costs by hundreds of millions of dollars and allow it to compete more effectively. If the newly merged company rose prices, the company would feel backlash from customers.
Testimony in the case is expected to continue through Wednesday, so stay tuned to AndNowUKnow for continued updates.