Brazilian food group Perdigao has confirmed that it remains in talks over a possible tie-up with local meat processing giant Sadia amid renewed speculation that a deal is imminent.

Perdigao said yesterday (12 May) that the two sides had had "preliminary" talks about the "feasibility" of an alliance.

The company, however, added that an agreement had yet to be struck. Reports in Brazil had claimed that a deal would be announced this week.

Sadia refused to be drawn on the speculation, declining to comment on the "rumours" when contacted by just-food.

Sadia revealed in March that the two sides were in talks. Last month, the group's chairman said he was hopeful of a deal by June.