June 30, 2011

Brazil antitrust agency postpones Brasil Foods ruling again

Brazil's antitrust agency, Cade, has once again postponed a decision on the merger of Brazil's biggest poultry processors to form BRF Brasil Foods.

Cade had been set to vote on the merger on Wednesday (Jun 29), but pushed back the date to July 13, a Cade spokesman said.

The antitrust regulator had signalled it would block the merger of Perdigao SA and Sadia SA, which agreed to join in 2009 to form BRF, after the leading board member of the agency voted against it, and other members indicated they would follow his lead.

Cade had earlier delayed the vote from June 15 to June 29 at the request of BRF.

Board members and the company have both asked for more time to work out possible alternatives to a rejection of the merger.

Cade gave BRF 30 days, starting June 15, to present a new proposal that would allow the regulator to approve the merger, according to local reports. The new proposal may go as far as selling off either the Perdigao or Sadia brand.