Tuesday, March 11, 2008

Brazilian meatpacker edges out Tyson to acquire Pena Branca

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

Pena Branca gained notoriety in the United States following reports Springdale, Ark.-based Tyson Foods Inc. was trying to buy the Brazilian processor. Though Tyson would not then confirm Pena Branca was its Brazilian acquisition target, Tyson spokesman Gary Mickelson on Friday told Meatingplace.com, "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 added, however, that the company remains, "committed to establishing a presence in Brazil and continues to explore several other opportunities there."

Marfrig acquired Pena Branca, its first poultry venture, for $53 million. Pena Branca processes 300,000 head per day at two slaughter facilities and has 2,140 employees.

The Brazilian meatpacker also acquired a controlling stake in DaGranja Agroindustrial Ltd., a poultry and pork processor, for $58 million.

Marfrig's purchases are still subject to due diligence activities and approval by shareholders.

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