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Monday, November 3, 2014

Sysco says US Foods acquisition unlikely to close this year, (NYSE: SYY)

Food distributor Sysco Corp said it did not expect to complete its acquisition of US Foods Inc this year and it was still in talks with U.S. antitrust regulators to secure an approval for the deal. The Federal Trade Commission has been closely reviewing the deal as the two companies are the only ones with geographic reach to offer nationwide contracts for a wide range of goods to customers ranging from hotel chains to fast food restaurants.Sysco said in December 2013 that it would purchase US Foods for about $3.5 billion from its private equity owners, including KKR & Co.The deal, which will combine the top two U.S. food distributors, was earlier expected to be completed before October.Sysco also reported on Monday better-than-expected sales and profit for the first quarter ended Sept. 27.

Sysco Corporation (Sysco), along with its subsidiaries and divisions, is a North American distributor of food and related products primarily to the foodservice or food-away-from-home industry. Shares of SYY fell by 2.87% or $-1.1072/share to $37.43. In the past year, the shares have traded as low as $32.11 and as high as $43.40. On average, 3121660 shares of SYY exchange hands on a given day and today's volume is recorded at 204770.