BRAZIL: Brasil Foods merger talks postponed
Cade was due to discuss the 2009 merger of Sadia and Perdigao in a session held yesterday (29 June)
Brazil's antitrust watchdog has once again postponed a vote on the merger that created meat giant Brasil Foods.
The Administrative Council for Economic Defense (Cade) was due to discuss the 2009 merger between Sadia and Perdigao in a session held yesterday (29 June).
However, talks did not take place and an adjudication meeting has now been scheduled for 13 July. Earlier this month, a member of Cade voted against the merger.
In a statement yesterday, Brasil Foods said: "BRF announces that it is in discussions with Cade with the objective to achieve a negotiated solution for this matter. BRF will [keep] the market informed as to developments on the matter in question."
The country's competition regulator imposed temporary restrictions on the merger in 2009, saying that both companies must continue to operate separately until it came to a final ruling on the proposed deal.
Following the 2009 Cade decision, Perdigao changed its name to Brasil Foods and Sadia began operating as a subsidiary of the enlarged group through a share-swap deal.
In an interview with just-food in May 2010, Brasil Foods CFO Leopoldo Saboya said the group had begun to bring together parts of Perdigao and Sadia, including cash and liability management as well as sales and marketing.
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