A court has granted an injunction temporarily blocking Sysco from buying US Foods, a deal regulators oppose because they say it would reduce competition between food supply companies.
The U.S. District Court for the District of Columbia says the Federal Trade Commission showed that a delay is in the public interest because the $3.5 billion acquisition could reduce competition.
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Sysco Corp. says it is disappointed and will review the ruling and consider its options, including pulling the plug on the purchase.
The FTC challenged the deal in February and filed a complaint to stop it. It said Sysco and US Foods are the largest companies in their industry and that combining them would likely lead to higher prices for restaurants, hospitals, hotels and schools.