Nov 24 (Reuters) - Performance Food Group Company ( PFGC )

and US Foods ( USFD ) will no longer pursue a potential

merger, the companies said on Monday.

The move comes roughly two months after the food

distributors agreed to exchange sensitive financial information

without violating antitrust laws. The companies had been

discussing a potential deal since July, according to a report by

Bloomberg News.

Performance Food's ( PFGC ) CEO George Holm said on Monday that

executing its standalone plan is the best way to deliver

long-term shareholder value, citing strong first-quarter results

and momentum. The company also reaffirmed its annual sales and

profit forecasts.

US Foods ( USFD ) is valued at $15.85 billion and Performance Food ( PFGC ) at

$15.16 billion, according to data compiled by LSEG.

Shares of Performance Food ( PFGC ) were down 1% in premarket

trading, while US Foods ( USFD ) shares were unchanged.

Reuters reported in September that activist investor Scott

Ferguson had joined the board of Performance Food Group ( PFGC ), at a

time when the hedge fund Sachem Head Capital Management was

urging the food distributor to consider merging with rival US

Foods ( USFD ).

Holm had said on the company's earnings call in August that

the board has determined there was "no basis" to engage with US

Foods ( USFD ).