US Foods Holding Corp. is interested in acquiring Performance Food Group Co., potentially creating a $100 billion food distribution company. Performance Food’s shares surged 6.2% to an all-time high, with a market cap of $14.8 billion. US Foods shares remained flat at a market value of $18.6 billion.

If the deal goes through, the combined company would lead the US foodservice distribution market with 18% share, surpassing Sysco Corp.’s 17%. Performance Food specializes in pizzerias, convenience stores, and snacks, complementing US Food’s offerings. The deal could reduce US Food’s Ebitda margins but provide significant scale and synergies.

US Foods supplies restaurants, schools, hospitals, and hotels, generating $37.9 billion in revenue last year. Performance Food operates in the US and Canada through three units: Performance Foodservice, Vistar, and Core-Mark serving convenience stores. The deal structure may involve more equity to reduce debt pressure, but could face regulatory challenges.

In 2015, Sysco Corp.’s attempted acquisition of US Foods Inc. was blocked due to competition concerns. US Foods went public the next year. There is no certainty the current acquisition deliberations will lead to a transaction, with both companies declining to comment.

Read more at Yahoo Finance: Performance Food Draws Takeover Interest From US Foods