May 14, 2009

Perdigao, Sadia to operate separately for one year amid merger


Perdigão and Sadia will continue to operate separately for one year amid the merging of the two biggest Brazilian meat processors.


The idea is to give Brazil's top antitrust regulator Cade time enough to rule on the merger, according to sources familiar with the negotiations, reports local daily O Estado said.


Once the deal is signed, the new company's board will have two presidents, Nildemar Secches and Luiz Fernando Furlan, currently occupying the same position at Perdigão and Sadia respectively.


The transaction should be carried out through a share swap, with Perdigão owning 70 percent of the resulting company and Sadia 30 percent.


Together, Perdigão and Sadia would be the first Brazilian firm among the world's ten largest food companies, with annual revenue at R$ 22 billion (US$10.63 billion) and more than 100,000 employees.