Wednesday, reports said that Brazilian JBS SA is set to announce as soon as next week the acquisition of Texas-based Pilgrim's Pride Corp. (PGPDQ.PK) for a price of roughly $2.5 billion.
The deal was in the final stages of negotiation and may yet fall apart. A JBS-Pilgrim deal would probably attract scrutiny from antitrust enforcers, who have said they plan to take a hard look at competition in the agriculture business.
Under the current proposal, JBS will make a "stalking horse" bid, in which it will be in the lead to acquire Pilgrim's Pride, though other bidders could later make competing offers, said the people familiar with the matter.
Reports said, in all, the offer is expected to be valued at $2.5 billion, according to a person familiar with the matter. It would pay off $1.2 billion in secured debt, about $1 billion in unsecured debt, accrued interest for the debt holders, and leave a "couple hundred million" for shareholders.
by RTT Staff Writer
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