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U.S. gov't delays Sysco's acquisition of U.S. Foods

Updated: 2015-04-10 07:57 Comments

HOUSTON, Nov. 3 (Xinhua) -- Sysco Corp., the world's largest food distributor, said Monday that its deal to buy U.S. Foods is being delayed as federal antitrust regulators continue their review of the acquisition.

The Houston-based food company announced last year it would purchase U.S. Foods. The deal was originally supposed to close in the third quarter of this year.

"The company continues to be in productive discussions with Federal Trade Commission staff on a solution to conclude its review," Sysco CEO Bill DeLaney said.

"Given the amount of work remaining, and considering the upcoming holidays, the company does not currently expect to complete the transaction before the first quarter of 2015," he added.

Sysco, which sells food products to restaurants, hotels and educational and health care facilities, on Monday reported fiscal first-quarter net earnings of 279 million dollars, down 2.6 percent from the same period last year, and earnings per share of 47 U.S. cents, 2.1 percent lower.

U.S. Foods, headquartered in Rosemont, Illinois, is the second largest food distributor and the 10th largest private company in the United States. It boasts an annual revenue of 19 billion dollars.

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