June 5, 2009

Sadia and Perdigao shareholders okay BRF-Brasil Foods merger

Perdigao and Sadia controlling shareholders gave their final approval for the merger of the former rivals, both companies said in a filing with the Brazilian Securities & Exchange Commission on Thursday (June 4).

The approval comes as no surprise. Sadia sought a white knight buyer in early 2009 after posting its first ever financial loss in 2008 of 3.9 billion Brazilian reals, or US$2.01 billion, due to the declining value of the company's dollar futures positions held with international banks.

Perdigao agreed to the merger to create BRF-Brasil Foods on May 19. The companies combined annual revenues are estimated to be around US$11 billion and promise to be one of the world's leading chicken and pork meat exporters.