Regulators may delay approval for Sysco-U.S. Foods deal: NY Post
Jan 29, 2015 03:43 AM EST
Sysco Corp (SYY.N), the biggest U.S. food distributor, may have to wait longer for its $8.2 billion deal to buy US Foods Inc [USFOO.UL] to be approved by regulators, the New York Post reported.
The Federal Trade Commission (FTC) sent a subpoena to a third-party food distributor asking for more information, the report said quoting a source with direct knowledge of the situation.
The subpoena means the review of the December 2013 merger "is not done," the newspaper reported the source as saying.
A spokesman at Sysco declined to comment on the matter.
Representatives at US Foods and FTC could not be immediately reached for comment outside regular U.S. business hours.
Sysco said in December 2013 that it would buy US Foods for about $3.5 billion from its private equity owners, including KKR & Co (KKR.N), and assume $4.7 billion of debt.
The company has since been trying to win antitrust approval.
The FTC has been closely reviewing the deal as the two companies are the only ones with geographic reach to offer nationwide contracts for a wide range of goods to customers ranging from hotel chains to fast food restaurants.
According to analysts, the proposed merger also hinges on the top two U.S. food companies helping to turn a far smaller rival into a national player to ease antitrust concerns, but the gap may be too big.