Sysco Abandons Its Plans of Acquiring US Foods Inc.
Although the merger of Sysco Corp and US Foods Inc. would have been beneficial for the companies and would have cut cost for both, but that isn't happening right now.
With a ruling from a federal judge who opposed the deal, Sysco Corp. decided to give up the plan of acquiring its rival US Foods Inc. Sysco, the food-distribution company now has to formulate a fresh strategy for the future acquisitions and is most likely to go in for smaller deals.
Last Wednesday, Amit Mehta a District Judge in Washington issued a preliminary injunction so as to impede the deal from being fruitful worrying that the merger may not be beneficial for healthy competition.
In February, the FTC or the Federal Trade Commission filed a lawsuit challenging the deal on basis of antitrust concerns.
According to the chief executive of Sysco, Bill DeLaney, after reviewing different options which also included appealing against the decision given by the judge, the food company decided to close the chapter and move on.
On Monday, while speaking during an interview Mr. DeLaney said "We've turned the page." He says that the company will now focus on smaller acquisitions and plans to trim an annual cost of $750 million as well update its technology and product offerings.
New Zealand News
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