Tyson Foods has waved away reports from Brazil that it is in talks to buy local meat group Sadia.
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The US meat giant is building a business in Brazil and has been linked to Sadia, which admitted two weeks ago that it had been mulling a number of corporate deals.
However, Tyson insisted it was not in talks with the Brazilian firm. “Tyson is not engaged in any type of negotiations with Sadia at this moment,” a Tyson spokesperson told just-food. “Apparently there has been some online discussion about this topic; however, we are not in negotiations with Sadia.”
Officials at Sadia did not return a request for comment.
Earlier this month, Sadia revealed it was mulling a tie-up with local rival Perdigao. Sadia said the two sides were examining “the feasibility and convergence of interests in some kind of association”.
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By GlobalDataIn 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$347.5m) 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.
