Tyson Foods’ proposed acquisition of Keystone Foods from Marfrig Global Foods is getting closer to completion, as the transaction just lacks approval from the South Korean antitrust authority, Marfrig Global Foods stated.
While announcing the financial results of the third quarter of its 2018 fiscal year, Marfrig Global Foods stated that the transaction has already been approved by the antitrust authorities in the United States, Japan and China, as well as gaining approval from major shareholder BNDESPAR, the investment arm of Banco Nacional de Desenvolvimento Economico e Social -BNDES.
It added, “the approval of the South Korean antitrust authority, for its completion, remain(s) in progress.”
Marfrig is headquartered in Brazil, while its subsidiary Keystone Foods, as well as Tyson Foods, are headquartered in the United States. However, because of the international presence of Keystone Foods, approval must be given by other antitrust agencies.
In August, Tyson Foods announced that it had reached an agreement to purchase Keystone Foods, the tenth largest broiler company in the United States, from Marfrig Global Foods, for $2.16 billion in cash. Under the agreement, Tyson would acquire six Keystone Foods processing plants and an innovation center in the United States, as well as eight plants and three innovation centers in China, South Korea, Malaysia, Thailand and Australia. The U.S. facilities are located in Alabama, Georgia, Kentucky, North Carolina, Pennsylvania and Wisconsin.
At the time the pending acquisition was announced, Tyson Foods stated that it expected the deal to close in the middle of fiscal year 2019. Tyson’s fiscal years typically end on the Saturday closest to September 30, according to the company website.
Marfrig Global Foods announced in April its decision to divest of Keystone Foods to leverage its acquisition of the U.S. business, National Beef Packing Company, and also to allow the company to more fully concentrate on its beef operations. The National Beef transaction closed on June 6.
