Key facts
- FTC staff have expressed concerns about the combined market share of Cintas and UniFirst.
- Cintas agreed to acquire UniFirst for $5.5 billion in cash and stock.
- The deal spread widened to $64 on Tuesday from $50 on Monday.
- UniFirst shares plunged as much as 17% on Monday, while Cintas dropped 7.5%.
The Federal Trade Commission has indicated to uniform rental firm Cintas that it will sue to block its proposed $5.5 billion acquisition of rival UniFirst, Semafor reported on Tuesday, citing people familiar with the matter. FTC staff have privately expressed concerns about the companies' combined market share, though the agency has not yet voted on the decision. Cintas and UniFirst had previously certified to the FTC that they had substantially complied with the regulator's second request and entered into a timing agreement not to close the deal before December 11. The deal spread widened to $64 on Tuesday from $50 on Monday, and shares of UniFirst plunged as much as 17% on Monday while Cintas dropped 7.5%.