Pilgrim’s proposed purchase of Tyson Foods’ operations in Mexico may not be finalized for several months, Pilgrim’s CEO Bill Lovette said on October 30 during a quarterly earnings call with shareholders. Pilgrim’s, which already has a presence in Mexico, looks to expand its poultry operations in the country and announced in July that it intends to purchase Tyson’s Mexican unit, Tyson de Mexico.
“We’re progressing through the required evaluations from regulatory agencies,” said Lovette. “We don’t anticipate final resolution until late this year or early 2015. In the meantime, our energies are directed toward continuing to be a strong operator with profitable growth.”
Pilgrim’s has agreed to pay $400 million for Tyson’s Mexican operations, a vertically integrated poultry business based in Gomez Palacio in North Central Mexico. Tyson de Mexico has three plants and employs more than 5,400 people at its plants, offices and seven distribution centers. Once acquired, the business unit will become part of Pilgrim’s Pride Mexico.
Lovette’s update on the proposed acquisition comes on the heels of the news that the sale of Tyson’s Brazilian unit, Tyson do Brasil, to JBS Foods has been approved by Cade, Brazil’s competition commission. That acquisition is valued at $175 million.