Sysco looks as though it will have to wait longer for its $8.2 billion US Foods merger to be approved by regulators, if it is at all.
The Federal Trade Commission this week sent a subpoena to a third-party food distributor asking for more information, a source with direct knowledge of the situation said.
Blackstone Group-owned Performance Food Group agreed in early December to buy assets from Sysco with roughly $5 billion in revenue, a source said, noting PFG did not get the subpoena.
Sysco, in the merger agreement, agreed to sell assets with $2 billion of revenue in order to merge with its closest rival, US Foods.
The proposed merger combines the top two US food distributors and creates a company with a quarter of the $235 billion North American market.
The subpoena means the review of the December 2013 merger “is not done,” the source said.Read the Full Article