Sysco Corp. (SYY) said Monday it is walking away from its planned acquisition of US Foods Inc. after a federal judge issued a preliminary injunction against the deal last week.
The deal, announced in December 2013, would have combined the nation’s two largest food distributors, which provide ingredients and a range of other supplies to restaurants, hotels, schools and other food-service operations.
Sysco shares added 1.6% in premarket trading.
Sysco said it will pay US Foods a breakup fee of $300 million. The company also said it will spend another $3 billion buying back shares over the next two years and will redeem $5 billion in merger-related debt.
The Federal Trade Commission filed a lawsuit in February challenging the transaction on antitrust grounds.
Sysco Terminates Merger Agreement with US Foods | Fox Business.