(Reuters) -Performance Food Group Company and US Foods will no longer pursue a potential merger, the companies said on Monday.
The move comes roughly two months after the food distributors agreed to exchange sensitive financial information without violating antitrust laws. The companies had been discussing a potential deal since July, according to a report by Bloomberg News.
Performance Food’s CEO George Holm said on Monday that executing its standalone plan is the best way to deliver long-term shareholder value, citing strong first-quarter results and momentum. The company also reaffirmed its annual sales and profit forecasts.
US Foods is valued at $15.85 billion and Performance Food at $15.16 billion, according to data compiled by LSEG.
Shares of Performance Food were down 1% in premarket trading, while US Foods shares were unchanged.
Reuters reported in September that activist investor Scott Ferguson had joined the board of Performance Food Group, at a time when the hedge fund Sachem Head Capital Management was urging the food distributor to consider merging with rival US Foods.
Holm had said on the company’s earnings call in August that the board has determined there was “no basis” to engage with US Foods.
(Reporting by Sanskriti Shekhar in Bengaluru; Editing by Sahal Muhammed)
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