Sysco Extends Merger with US Foods
HOUSTON, TX - Sysco Corp. has extended its agreement to acquire US Foods by an additional 60 days from the original agreement in anticipation of the antitrust hearings filed by the FTC.
The end date of March 8 was moved to May 7, according to a report from the Wall Street Journal (WSJ), in a filing with the U.S. Securities and Exchange Comission.
The grounds for the FTC filing the antitrust lawsuit, as we have previously reported, are that a merger between Sysco and US Foods would create a dominant national company. This could give the new company the ability to raise prices and reduce service for restaurants, hotels, schools and any other businesses that buy a wide range of food and products from Sysco and US Foods.
During a hearing, U.S. District Judge Amit Mehta said he would consider the case from May 5 to May 8, but could possibly add as much as three more days the following week, if necessary.
The case is not going to be a full trial, but instead Judge Mehta will consider a preliminary injunction to block the companies from merging while the FTC goes through a more in-depth trial through its in-house administrative court system at the start of July, according to the WSJ report.
Stay tuned to AndNowUKnow as we keep you up to date on this developing story.