December 18, 2009

Brazil's Perdigao, Sadia seek to unify beef operations

Brazilian meatpackers Perdigao and Sadia are petitioning the government's antitrust division, CADE, to let them unify their beef purchasing and sales operations, a Perdigao press officer said Thursday (December 17).

CADE began assessing the proposal Wednesday and is expected to make a decision about the companies' beef operations in 2010, the press officer said.

Perdigao and Sadia merged this year to create BRF-Brasil Foods. CADE must still approve the overall merger and has been reviewing it since May. Sadia is, therefore, officially a subsidiary of Perdigao.

Perdigao and Sadia previously agreed to remain independent to avoid altering the two companies' structures ahead of CADE's final decision. Perdigao and Sadia hope that in the area of beef this can be flexible ahead of final approval of the overall merger, she said.