HOUSTON, TX - Sysco Corporation's announced that its merger with US Foods has been delayed and could now close either late during Q3 or during Q4, pending approval by the Federal Trade Commission, according to The Wall Street Journal. The holdup is a product of the ongoing review process by the FTC, but Sysco is not concerned about the delay, saying that it still considers everything to be moving along smoothly.
"Transactions of this nature and complexity historically take on average nine to 12 months to close from the date of announcement...[but] the process is fluid, and it is not uncommon that timing expectations are adjusted," a Sysco spokesman told the Wall Street Journal.
The proposed $3.5 billion merger agreement, which would give the company 25% of the foodservice market share, is the first of its kind, and the need for the FTC to develop protocols to review a merger of this magnitude is the main source of the delay, according to Sysco.
The Wall Street Journal speculates that the delay could also indicate the need for Sysco and US Foods to divest themselves of some of their assets.
Sysco, however, demonstrated its confidence in the seamless approval of the merger by already announcing the senior executives who will be in charge of the company's operations in the wake of the deal. According to a press release, these executives are:
- Tom Bené: Lead of Domestic and International Operations.
- Scott Charlton: Lead of End-To-End Supply Chain Operations
- Chris Kreidler: Lead of the Finance Function
- Russell Libby: Lead of Corporate Affair
- Paul Moskowitz: Lead of Human Resources
- Pietro Satriano: Lead of Merchandising and Marketing
- Stuart Schuette: Lead of Sales and Sales Development & Strategy
- Wayne Shurts: Lead of Business Technology
Speaking about his newly announced team, Sysco President and Chief Executive Officer Bill DeLaney said, "Each of these individuals brings to the job a wealth of customer focus, personal commitment, industry knowledge and professional expertise. I look forward to working with this senior team upon completion of the merger as we continue to pursue being our customers' most valued and trusted business partner."
Stay tuned to AndNowUKnow for any future updates on the impending merger of Sysco and US Foods.
