Brazilian meat giant Marfrig is close to concluding the sale of its US-based Keystone Foods subsidiary, according to a report.
News agency Reuters, quoting a “person with direct knowledge of the matter” reports that Marfrig has had five binding offers for Keystone which its controlling shareholder Marcos Molina will decide between soon.
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According to the report, those who have thrown their hat in the ring in a bid to become the new owner of Keystone are US meat heavyweights Tyson Foods and Cargill, Chinese duo China Investment Corp and Cofco Corp and George Inc, a family-owned chicken producer based in Arkansas.
The price for Keystone, which supplies chicken products to restaurant chains such as McDonald’s, could be as high as US$3bn market watchers have suggested. Marfrig acquired Keystone eight years ago for $1.26bn.
Marfrig is now the world’s second-largest beef processor following its acquisition of a 51% stake in National Beef Packing Company of Missouri, a deal for which it gained approval earlier this month for US$969m.
When Marfrig announced its plan to sell Keystone in April, the company said the funds raised would be used to pay off a $900m bridge loan taken out to partly finance the National Beef investment.
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By GlobalDataThe Brazilian firm has engaged JPMorgan and Rabobank to oversee the Keystone disposal.
