Sysco-US Foods Merger Off, Sysco to Pay $300M Break-up Fee

Sysco announced on Monday that its merger agreement with US Foods is off and that it will pay a $300M break-up fee to walk away from the deal. The move comes in response to a U.S. District Court granting the federal government’s preliminary injunction request to block the merger. Performance Food Group will also be paid $12.5M as they were to purchase some US Foods facilities as part of the deal according to Fortune. The deal was announced in late 2013 and has been plagued by regulatory concerns. Sysco also announced plans to buy back $3B in shares over the next two years. [FOR]

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