Brazil's JBS: Deals Create World Largest Protein Co
17 September 2009 - 3:05AM
Dow Jones News
The merger with Brazilian beef company Bertin and the
acquisition of U.S. chicken processor Pilgrim's Pride Corp. (PGPDQ)
will make local meatpacker JBS SA (JBSS3.BR) the world's biggest
producer of animal protein, surpassing Tyson Foods Inc (TSN), the
company claimed Wednesday.
The company has projected combined revenues of $28.7 billion,
beating Tyson's $28.1 billion registered in 2008, JBS Chief
Executive Joesley Mendonca Batista said during a conference
call.
Earlier Wednesday, JBS announced a merger with its local rival
Bertin, creating the world's largest beef producer. The all-stock
transaction will leave JBS with a 60% stake and Bertin with a 40%
stake.
Meanwhile, it also announced that U.S. chicken processor
Pilgrim's Pride Corp. had accepted its bid for control of the
company. The deal will involve $800 million cash payments and total
$2.8 billion, once the debts of the bankrupt company are
included.
The Pilgrim's Pride deal is the company's first major experience
with poultry, but the deal makes it the world's No. 2 in the
sector.
-By Alastair Stewart, Dow Jones Newswires; 5511 2847-4520;
alastair.stewart@dowjones.com