Some 20 state attorneys general have joined the federal antitrust investigation of competing bids by Dollar General Corp (DG.N) and Dollar Tree Inc (DLTR.O) to buy Family Dollar Stores Inc (FDO.N), a development that potentially complicates the companies' efforts to win U.S. approval for a deal.
The proposed merger of Sysco Corp (SYY.N) and US Foods Inc [USFOO.UL] hinges on the top two U.S. food companies helping to turn a far smaller rival into a national player to ease antitrust concerns, but the gap may be too big, analysts said.
Sysco Corp (SYY.N), the biggest U.S. food distributor, is in advanced talks to sell some assets to a food company owned by Blackstone Group (BX.N) in order to win regulatory approval for its acquisition of US Foods Inc [USFOO.UL], the New York Post reported, citing sources.
Sysco Corp's $3.5 billion acquisition agreement with US Foods has drawn the interest of US regulators over concerns that the deal could weaken competition in the industry, Bloomberg reported.
The merger of US Foods with Sysco has spoiled the plans for a $62 million US Foods expansion project in Seabrook, New Hampshire, a report said.
Sysco Corp announced it will buy rival US Foods for USD3.5 billion in a merger deal that will create a food distribution giant with around USD65 billion in annual revenue.