Talks over a possible transaction between Brazil-based food groups Sadia and Perdigao are ongoing, with Sadia’s chairman hopeful of a deal by June.

Sadia first admitted the two sides were mulling some kind of a tie-up last month, although the company declined to give any further details.

Yesterday (31 March), the company confirmed to just-food that its chairman, Luiz Fernando Furlan, is hopeful that the companies could reach a decision by June.

A Sadia spokesperson, however, insisted the company’s management had yet to publicly comment on what form a tie-up with Perdigao could take.

“[Furlan] didn’t say anything about what kind of transaction would it be,” the spokesperson said.

Last week, US meat giant Tyson Foods waved away reports from Brazil that it was in talks to buy Sadia.

On Friday, Sadia admitted that large losses on currency derivatives during the last three months of 2008 meant the company posted its first annual loss in its history.

Perdigao, meanwhile, saw operating income and sales jump in 2008 although the Brazilian real’s devaluation against the US dollar hammered net earnings.