BRAZIL: Meat firms Sadia, Perdigao mull tie-up
Brazil-based meat giant Sadia has revealed that it is mulling a tie-up with local rival Perdigao.
In a statement to the Sao Paulo stock exchange, Sadia said last night (16 March) that the two sides are examining "the feasibility and convergence of interests in some kind of association".
Sadia said it had considered several types of corporate transaction in recent months but declined to give any further details.
The company said a further announcement would be made should a tie-up be formalised.
In November, rumours emerged that Sadia was looking to either sell off some of its assets or seek a strategic partnership to shore-up debt. Sadia refused to comment.
In October, Sadia posted a third-quarter net loss of BRL777.4m (US$342m) due to the impact of foreign exchange derivatives held by the company.
The loss compared to a profit of BRL188.4m in the third quarter of last year but Sadia said it had secured credit of BRL2.3bn to guarantee cash flow and cover liabilities.
The result masked an 8.7% rise in operating profit to BRL189.4m. Sales were up 28.3% to BRL3.15bn.
Demand for "value-added" convenience food is set to be a central factor in the buoyant growth forecast for the Brazilian food sector from industry analysts BMI....
Shareholders in Brasil Foods (BRF), formerly Perdigao, and Sadia approved plans to merge the two groups at a special shareholders meeting....
Brazilian meat processor Sadia saw its second-quarter net profit jump 124% on Friday (14 August), due in part, by a positive result in the company's domestic market....
Brazilian food processor Brasil Foods has priced its previously announced global offering of 115,000,000 of common shares....
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