- Following weeks of hearings, a federal judge has given a preliminary injunction stopping Sysco's acquisition of US Foods, siding with the Federal Trade Commission. The merger was announced in December 2013.
- The FTC filed a lawsuit in February, citing antitrust concerns.
- Details of the ruling are not yet public, though on Friday a redacted public version will be available.
The companies noted Judge Amit Mehta's decision would be critical to the chances of the merger's survival. US Foods went as far as to say during trial that it would leave the deal if the judge sided with the FTC.
Sysco CEO Bill DeLaney told Reuters the company was "profoundly disappointed" with the outcome, and it's not yet clear if Sysco is looking toward an appeal.
Sysco would owe US Foods $300 million if the deal falls through, not to mention the $355 million spent on integration plans, antitrust lawyers, plus other expenses as of March's close.
In after-hours trading Tuesday, Sysco shares fell 3.1%.