June 6, 2011


Brasil Foods merger to approach regulator



The tie-up between Brazilian food processors Sadia and Perdigao, from which Brasil Foods was established in 2009, will come before Brazil's anti-trust regulator CADE on Wednesday (June 8).


Brasil Foods became the world's biggest poultry exporter after Perdigao incorporated Sadia's business into its own.


When the deal was announced, it was estimated the two companies would together have a domestic market share greater than 55% in processed products including meat and margarine. For products such as fresh pasta, it was estimated to be as high as 80%.


Just last month, Cade said it might recommend the sale of one of the Brasil Food brands or even the outright cancelling of the merger. That announcement caused the company's shares to tumble more than 7% in just one trading session.


Brasil Foods shares dipped 1.72% on Thursday (Jun 2) to BRL28.60 (US$18.18).

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