Report: US FTC Staff Indicate Plan to Sue to Block $5 Billion Cintas-Unifirst Merger
Anonymous sources say US regulators will challenge the deal, contradicting expectations of lax antitrust enforcement.
According to a Semafor report citing people familiar with the matter, staff at the U.S. Federal Trade Commission (FTC) have privately indicated to Cintas Corporation that they intend to file a lawsuit to block its proposed $5 billion acquisition of rival uniform provider Unifirst Corporation. The regulator has not yet voted on the final decision, and a formal meeting to discuss the case has not been held.
This development challenges the prevailing assumption among dealmakers that the current U.S. administration would take a light-touch approach to mergers. Following the report, shares of Unifirst dropped by 12%, while Cintas shares fell by 6%. An FTC spokesperson stated that any final decision would not be communicated through the press.