Brazil's Sadia seeks main meat rival Perdigao

BRAZIL - Brazil's largest pork and poultry processor Sadia offered on Monday to pay 3.7 billion reais ($1.7 billion) for a majority stake in its largest domestic rival Perdigao in a deal that would give it a commanding advantage at home and added scale abroad.
calendar icon 18 July 2006
clock icon 2 minute read

Sadia's bid, which will make it the commanding leader in the domestic meats market and will have to be approved by the local antitrust regulators, may be a defensive move against a potential takeover bid for Perdigao, Brazil's No. 2 meat processor, by a large foreign interest like Tyson.

Local analysts have said the largest U.S. meats producer, Tyson Foods Inc. (TSN.N: Quote, Profile, Research), is looking to enter the Brazilian market with a local acquisition.

In a move to beef up its meats business, U.S. food giant Cargill bought the major Brazilian slaughterhouse Seara Alimentos in 2004 and announced investments of up to $100 million to boost its poultry and pork capacity.

Source: Reuters

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