News 594 views update:Mar 11, 2008

Brazilian meatpacker edges out Tyson to buy poultry processor

Brazilian meatpacker Marfrig has reportedly announced that it has acquired a controlling stake in Pena Branca, the largest poultry processor in Sao Paulo.

Meatingplace has reported that Pena Branca has gained notoriety in the US following reports that Tyson Foods was trying to buy the Brazilian processor. Though Tyson would not then confirm Pena Branca was its Brazilian acquisition target, Tyson spokesman Gary Mickelson stated: "Tyson did have interest in buying Pena Branca, [but] our concerns over some regulatory matters made it difficult to reach a mutually acceptable agreement."
Mickelson also said that the company remains committed to establishing a presence in Brazil and that it will continue to explore other opportunities there.
Marfrig acquired Pena Branca, its first poultry venture, which processes 300,000 head per day at two slaughter facilities, for US$53 mln. The Brazilian meatpacker also acquired a controlling stake in DaGranja Agroindustrial Ltd., a poultry and pork processor, for US$58 mln.
Marfrig's purchases are still subject to due diligence activities and approval by shareholders.
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