• Categories
  • Archives

Brazil’s Sadia Wants to Take Over Perdigí£o. Offer Too Low, Says Perdigí£o

Brazilian food company Sadia has decided to purchase stock control of Perdigão, their main competitor. Sadia plans on buying 100% of Perdigão’s shares for 3.7 billion reais (US$ 1.76 billion), creating Brazil’s fourth biggest exporter.

The new company would also generate in exports alone US$ 5.5 billion, becoming the world’s fourth largest meat processor behind Tyson Foods, Smithfield Foods and Pilgrim’s Pride Corp., all from the US.

They would be a giant with 81,000 employees, using 16,00 rural producers, 38 distribution centers and 26 food-processing plants. Sadia/Perdigão would slaughter every year 1.2 billion chickens, 31.9 million turkeys and 7.4 million pigs.

Sadia’s objective is to become an important competitor in the international market. The greater part of the money to be used in the purchase – R$ 2.7 billion (US$ 1.28 billion) – comes from a loan by the bank ABN Amro. The company has R$ 1 billion (US$ 476.92 million) in cash for the operation.

Analysts predict that Perdigão’s shareholders will accept the offer that’s been presented as a "voluntary offer" by Sadia. Perdigão is controlled by seven Brazilian pension funds.

Nildemar Secches, Perdigão’s president, however, called the 27.88 reais (US$ 12,61) per share offer "extremely low" and commented on the "voluntary" classification: "All over the world this kind of offer is called hostile."

The deal would be the biggest fusion in the Brazilian industry since July 1999, when beer and soft drink company Brahma bought its competition, Antarctica, to create AmBev.

The purchase will need not only the approval of Perdigão’s shareholders, but also the OK from Brazil’s Antitrust Authority, the CADE (Conselho Administrativo de Defesa Econômica).

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Small Victory

In court, the Indians held their emotions even when they were informed about the ...

Brazil’s Leading Bank Poised to Buy Rescued Banks in the US and UK

Itaú-Unibanco, Brazil’s leading private banking institution denied London press reports it was interested in ...

It Serves US Right

In the 80’s, Osama Bin Laden was the right arm of the CIA against ...

Brazil’s Lula Appeals for Haiti and Africa in Paris

Brazilian President Luiz Inácio Lula da Silva appealed to the international community to help ...

After a 10-Year Silence, a Brazilian Chancellor Goes to Israel

The Brazilian Minister of Foreign Relations, Celso Amorim, is in Israel. This is the ...

Central Market in Florianópolis, state of Santa Catarina, Brazil

A Few Ways to Legally Move to Brazil Without Having to Marry a Brazilian

Immigration visa to Brazil will be granted only to applicants who satisfy the special ...

Brazilian Presidential Candidate Marina’s Decision: The Biggest Loss of All

Green Party presidential candidate Marina Silva has decided to abstain from endorsing either of ...

Lula’s Lack of Leadership Leads Brazil’s Market Down

Brazilian and Latin American markets slumped, alongside a lower close for U.S. shares. In ...

Brazil Still Ambivalent on Adopting Genetically Modified Crops

Brazilian legislation permits the cultivation of one type of genetically modified (GM) soy and ...

Brazilian Indians Threaten to Kill Themselves After Being Thrown Off Their Lands

Over one hundred federal police evicted the Guarani-Kaiowa Indians of Ñanderú Marangatú, Mato Grosso ...