While there is very strong media speculation that Brazil's Perdigão and Sadia are going to merge, a press release on Perdigão's website dated May 12 said that no deal has been reached.

The press release said: "Perdigão S.A. wishes to reiterate to the public its communication of April 24, 2009, in which it stated that it is in discussions with Sadia S.A. with a view to analyzing the feasibility of an association between these two companies. However, at the present time, Perdigão and Sadia have not reached any agreement on the terms of any such association and have not signed any document, even of a preliminary nature, with respect to this matter."

The Brazilian business media, and now the international press, have been talking about this merger as if it were a done deal and published some very specific information on how everything was going to break down. According to these reports it will be stock swap merger, with Perdigão ending up with 70% of the controlling stock.


The Brazilian media has already dubbed the new company "Sadigão."  Speculation about a merger between these two companies has been rife all year, particularly in April, since Sadia is known to be in a precarious financial situation. 

In April Sadia said it would let its stockholders make this decision during their June meeting. Perdigão has been very quiet about the potential merger the entire time.