U.S. Foods Holding Corp. is showing interest in acquiring Performance Food Group in a deal that could potentially form a food distribution company with approximately $100 billion in combined annual sales, Bloomberg reported July 11, citing people familiar with the matter.

Such a combination would create the largest U.S. foodservice distributor, with 18% of the $371 billion market, according to Bloomberg Intelligence, narrowly surpassing Sysco Corp.’s 17%.

Rosemont, IL-based U.S. Foods supplies restaurants, hospitals, schools and hotels, and generated $37.9 billion in revenue last year. The company employs approximately 30,000 people across more than 70 locations.

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PFG delivers over 300,000 food and related products to customers across the U.S. and Canada, offering services across three units — restaurant supplier Performance Foodservice, candy and snack distributor Vistar and its Core-Mark business serving convenience stores. The Richmond, VA-based company reported total sales of $58.3 billion for its fiscal 2024, and a net profit of $6.6 billion.

Shares of PFG rose as much as 6.2% on July 11, the company’s biggest intraday gain in three months, and closed the up 4.8% in on the New York Stock Exchange, giving the company a market capitalization of about $14.8 billion. US Foods shares closed largely flat, with a market value of approximately $18.6 billion, Bloomberg added.

There is no certainty the discussions will lead to a transaction, Bloomberg said, while representatives for both U.S. Foods and PFG declined to comment. Neither company has publicly acknowledged discussions on the matter.

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In 2015, Sysco Corp.’s planned $3.5 billion acquisition of U.S. Foods was blocked by a federal judge who said the deal would likely reduce competition. U.S. Foods went public the following year under its current name.