FTC flexes its muscles on $5 billion uniform deal
Legal threats run counter to the Trump administration’s hands-off merger approach.
The Federal Trade Commission (FTC) has hinted at its intention to challenge a proposed $5 billion merger between Cintas and Unifirst, two companies that supply uniforms, cleaning supplies, and office materials. According to sources familiar with the situation, the regulator has yet to make a final decision on the matter, but FTC staff have privately raised concerns about the combined market share of the two firms.
The FTC has not yet held a formal "last-rites" meeting to discuss the decision. A spokesperson for the FTC stated that any decision on the matter would not be communicated through the press. Cintas, a $84 billion company, had been pursuing the acquisition of Unifirst for several years. Following reports that the FTC might seek to block the deal, Unifirst shares fell by 12%, while Cintas' shares dropped by 6%.
This potential lawsuit is at odds with the belief of many in the industry that the FTC and the Justice Department's antitrust division will adopt a more lenient stance towards mergers. This scenario bears resemblance to the Trump administration's approval of Paramount's $110 billion acquisition of Warner Bros. Discovery, which underwent intense scrutiny from FTC staff but ultimately received approval from federal antitrust regulators.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
