Dive Brief:
- According to an SEC filing, Sysco has extended the deadline for its merger agreement with US Foods by 60 days, from March 8 to May 7.
- The move coincides with a recent announcement that a federal judge had set a date for the FTC and Sysco-US Foods hearings, which will begin May 5.
- The hearings will determine whether a preliminary injunction is needed to suspend the merger activity until the FTC's antitrust lawsuit is resolved.
Dive Insight:
As badly as Sysco and US Foods want this merger to go through, it seems the FTC wants to see it stalled, if not entirely prevented, just as much. The FTC contends that the merger would result in a dominant national company that could thwart competition in many areas of the country and lead to higher prices and less access to products for restaurants and other food businesses. These hearings are a couple months out but will likely be the next big step either forward or backward for this potential merger.