![]() ![]() Pilgrim's said it does not expect any additional plant closings. Since JBS has no poultry business in the United States or Brazil, the deal is likely to face little government opposition. The Pilgrim's-JBS deal is expected to be subject to U.S. beef market if it had acquired all three meat companies. JBS would have controlled roughly 30% of the U.S. ![]() Justice Department blocked the deal for National Beef on antitrust grounds. meats business in 2007, first acquiring Swift & Co., followed by deals for Smithfield Beef and National Beef Packing Co. The proposed deal also will step up competition with Springdale, Ark.-based Tyson Foods poultry industry with the acquisition of Pilgrim's Pride," JBS USA Chief Executive Wesley M. beef and pork company, we are proud to now enter into the U.S. In late July, JBS filed plans for a $2 billion IPO for its U.S operations, but the date of the offering has not been set. The company earned $53.2 million for the quarter ended July 27, while sales fell 19% to $1.77 billion.Īs part of its restructuring, Pilgrim's Pride this week proposed to pay a large number of contract growers $3.15 million to settle claims brought by the chicken farmers after the company sought to terminate their contracts during bankruptcy.īased in Sao Paulo, Brazil, JBS (JBS) is the world's largest beef producer and the third-biggest U.S pork producer, with annual sales of more than $20 billion. Pilgrim's Pride has since closed plants, cut production and terminated contracts with chicken growers, helping it become profitable again. chicken producer before it went belly-up. The poultry producer filed for Chapter 11 bankruptcy nine months ago after it was dragged down by lofty feed-grain prices, overproduction and too much debt. The plan also includes $1.75 billion in financing to be provided by a group of lenders. In over-the-counter trading, Pilgrim's Pride shares shot up 12% to $5.60. In most corporate bankruptcies, shareholders are wiped out and creditors often lose money too. Hopes the bankruptcy judge confirms the plan by December. ![]()
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