The court decided that the merger was likely to cause the type of market concentration that antitrust laws intended to prevent. 4. Consequences of the Terminated Merger
US Foods later pursued a successful Initial Public Offering (IPO) in May 2016, returning as an independent public company. 5. Summary Table Transaction Value ~$8.2 Billion Combined Sales Estimated $65 Billion Annually Market Share Impact 75% of National Broadline Distribution FTC Action Sued to Block, Feb 19, 2015 Final Outcome Terminated, June 29, 2015 Termination Fees $312.5 Million+ If you're interested, I can provide more details on: The FTC's legal arguments against the merger. sysco buys us foods
In December 2013, , the largest broadline food distributor in the United States, announced a definitive agreement to acquire its largest competitor, US Foods , for approximately $8.2 billion, including assumed debt. The merger intended to create a dominant player with a 75% market share in national broadline distribution. However, the deal was terminated in June 2015 following a Federal Trade Commission (FTC) lawsuit and a subsequent federal court ruling that concluded the merger would significantly harm competition in the foodservice industry. 1. Context and Strategic Rationale The court decided that the merger was likely
Sysco officially abandoned the merger on June 29, 2015. The merger intended to create a dominant player