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:

You May Also Like

Rabbi Henry Sobel's Florida police mug

Brazil’s Top Jewish Leader Goes to Jail in Florida for Shoplifting

New York raised Rabbi Henry Sobel, 63, one of Brazil's most respected religious leaders ...

The Confession

Why insist on playing with fire, which is precisely what this government and its ...

RAPIDINHAS

According to many Portuguese people 160 million Brazilians speak the language wrongly. Are all ...

Animal Feed Factory from Brazil Expands

BioBase Animal Feed has expanded its factory in Àguas Frias, in the interior of ...

Still Treating His Cancer Lula Shows Up in Brasília and Steals the Show

Luiz Inácio Lula da Silva, Brazil’s former president, currently undergoing treatment for throat cancer, ...

Laughing Stock

"Now we find out that all the recent American elections, done with the same ...

Brazil and US Don’t Want Trade War. They Are Getting Ready for It, Just in Case

US Commerce Secretary Gary Locke said that Washington was seeking talks with Brazil before ...

Lula Scolds ‘Cartel of Powerful’ for Blocking Brazil’s Progress

Brazilian President, Luiz Inácio Lula da Silva, said that Brazil's booming ethanol business won't ...

Brazil: Despite Charges of Fraud and Corruption Lula Backs Allied Senator

Luiz Inácio Lula da Silva, the president of Brazil, said that the resignation or ...

100 Books You Must Read to Understand Brazil. Or Not.

Bravo! Magazine has compiled a list with one-hundred essential books in Portuguese. Similar lists ...