Brazilian meat processor JBS S.A. is reported to be in negotiations to purchase U.S. poultry processor Pilgrim’s Pride for $2 billion dollars. The transaction is supposed to be completed and announced Tuesday, September 8.
The Brazilian press first reported this September 2, and it was met with “no comment” responses by both Pilgrim’s Pride and JBS. The Brazilian press acknowledged the deal could still fall through.
Pilgrim’s Pride is the largest U.S. poultry processor and also has operations in Puerto Rico and Mexico. JBS is one of the largest meat processors in the world.
Pilgrim’s Pride filed for Chapter 11 bankruptcy protection in December 2008, and has a September 30 deadline to file its reorganization plan.
Last year, JBS’s U.S. businesses reported an income of nearly $9 billion, while Pilgrim’s Pride’s income was $8 billion.
According to the Brazilian news Web site, O Popular, if the transaction goes through, it will create a company to rival Tyson Foods in the beef, poultry and pork sectors.