Source: Lisa M. Keefe, MEATINGPLACE, 6/24/15


A judge in the U.S. District Court of the District of Columbia issued a preliminary injunction Tuesday preventing the merger of Sysco Corp. and US Foods Inc., agreeing with the Federal Trade Commission that the combination would violate antitrust provisions, according to media reports.

The injunction could kill the deal altogether, although the FTC sought to hold up the merger only while it considered the merits of the transaction in an in-house administrative proceeding. US Foods executives reportedly said in court that if the federal judge ruled against the deal, they would walk away.

A redacted version of the court’s ruling is expected to be available on Friday.

In a statement, Sysco CEO Bill DeLaney said, “While we respect the Court's decision, we are profoundly disappointed with this outcome. We … strongly believed the merger of Sysco and US Foods would be procompetitive and good for customers, associates and shareholders. Nevertheless, we certainly understood this outcome to be possible and have been developing plans for the business moving forward.”

US Foods Chief Executive John Lederer, in a statement, reportedly said, “We are ready for whatever comes next. We have the talent, passion and financial foundation to take this company to the next level for our customers and for our employees.”
The Sysco-US Foods merger proposal was announced in 2013. In February, the FTC filed its lawsuit.

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