Shares of poultry exporter Brasil Foods SA stock plunged after regulators recommended it sell assets prior to taking over rival Sadia SA. The stock dropped more than 6% according to a report in Bloomberg Businessweek.

The drop follows recommendation by the antitrust arm of Brazil’s Finance Ministry that the company license one of its two main brands for at least five years or sell a block of assets before it will approve the takeover.


The ministry agency, known as SEAE, expressed concern over “significant concentration” in fresh beef and industrialized products markets, and said the deal would also narrow poultry and turkey slaughtering in some parts of Brazil.