January 21, 2010

Brazil permits Perdigao and Sadia to unify some purchases

Brazil's antitrust division, CADE, has given permission for Brazilian meatpackers Perdigao and Sadia to combine purchases of products and services such as inputs, grains and packaging.

Perdigao and Sadia merged last year to create BRF-Brasil Foods. CADE must still approve the overall merger and has been reviewing it since May. Sadia is considered a subsidiary of Perdigao in the meantime.

Perdigao and Sadia stated in a press release that CADE's decision allowed them to combine certain purchases, but it did not permit them to make joint purchases of chickens or pigs.

The two companies need to keep their structures separate until the merger is approved by CADE.

Brazil is the world's No. 1 exporter of chicken and beef.