BRAZIL/US: JBS coy as Pilgrim's Pride talk mounts

By just-food.com | 4 September 2009

JBS, the Brazil-based beef processing giant, has issued an oblique statement in response to mounting speculation about its possible interest in US poultry group Pilgrim's Pride.

Talk that JBS, which already has a significant presence in the US, could be set to further expand in the country has gathered pace throughout the week.

The Wall Street Journal has reported that a deal in the region of US$2bn to $2.5bn could be announced next week.

JBS has kept its cards close to its chest but yesterday (3 September) issued a short statement to the Brazilian stock exchange in which it made no reference to Pilgrim's Pride but said no transaction was in place "at this time".

"[JBS] routinely and constantly analyses investment opportunities for the expansion and organic growth of its activities, as previously and widely disclosed," the company said.

"In this sense, JBS hereby informs that there is no transaction or firm commitment by the company, at this time, which would justify the disclosure of a material fact regarding the possible acquisition of other companies by the company."

Beleaguered Pilgrim's Pride, which is busy restructuring its business after entering Chapter 11 last year, has so far stayed silent.

JBS snapped up Smithfield Foods' US beef operations last October but "terminated" a deal to buy local beef firm National Beef Packing Co. amid concern from US competition regulators.

Some industry watchers believe an acquisition of Pilgrim's Pride by JBS makes sense, with one analyst telling just-food the poultry firm would be an "attractive target" for the Brazilian group.

Sectors: Emerging markets, Meat & poultry

Companies: JBS, Pilgrim’s Pride, Smithfield Foods