SAO PAULO — Perdigao announced on May 19 it plans to acquire competitor Sadia, which will create Brazil’s largest pork and poultry processor with annual sales of more than US$10.59 billion, according to Reuters. The acquisition must first be approved by Brazilian regulators and does not include Sadia's Concordia Holding Financeira SA.
According to a securities filing, Perdigao will change its name to Brasil Foods and buy Sadia. Brasil Foods will also issue US$1.92 billion in stock.
Combined, both processors will control 57.4% of the processed meats market. As a result, the pending deal might face strong scrutiny from Brazilian anti-trust regulators.