Poultry processor Brasil Foods may be in jeopardy of a break up when Brazil's antitrust regulators vote on a move to block the merger of the two food processing companies that form Brasil Foods, according to reports.
Brazil's antitrust regulators will vote June 15 on whether to allow the $3.8 billion merger of Perdigão and Sadia, two food processing companies that merged in 2009 to make up Brasil Foods. A director on Brazil's competition board, Cade, already rejected the merger and the other four officials are expected to vote against the deal as well, reports say. If the legislation to block Brasil Foods merger is approved by Brazil's lower house, reports say Cade will have four months to make a final decision regarding the company.
Following a 6% drop in stock on June 9, Brasil Foods says it will negotiate with the competition commission to ensure its existence does not threaten competition in the country.
Some reports have said the company may sell 15 percent or more of its production capacity to gain regulatory approval.