Sysco Terminates Merger Agreement With US Foods | Fox Business

Sysco Corp. shares climbed 1.6% in premarket trade Monday, after the food distributor said it's terminating its merger agreement with US Foods, following an unfavorable court ruling last week. The U.S. District Court in Washington, D.C., ruled in favor of the Federal Trade Commission's request for an injunction to block the deal. The action also ends the company's agreement with Performance Food Group to buy US Foods facilities in 11 markets. Sysco will pay break-up fees of $300 million to US Foods and $12.5 million to Performance Food Group. "After reviewing our options, including whether to appeal the Court's decision, we have concluded that it's in the best interests of all our stakeholders to move on," Chief Executive Bill DeLaney said in a statement. Sysco will now refocus on its core business and will look for ways to boost revenue and rein in costs. The company's board has authorized the company to buy back an additional $3 billion of shares over the next two years. The company will start to redeem $5 billion of merger-related debt in a process expected to take no more than 40 days. Shares are down 3.3% in the year so far, while the S&P 500 has gained 2.1%.