Brazil's Sadia seeks main meat rival Perdigao

by 5m Editor
18 July 2006, at 12:00am

BRAZIL - Brazil&#39;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. Sadia&#39;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&#39;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. <i>Source: Reuters</i>

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