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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.Shares of Sysco, which also reported better-than-expected quarterly sales and profit, fell 3 percent in early trading.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."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," Sysco said in a statement on Monday.

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 2.45% or $-0.945/share to $37.60. 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 1601009.