Brasil Foods Ready to Negotiate

BRAZIL - Brasil Foods has made big gains on speculation of an anti-trust deal.
calendar icon 17 June 2011
clock icon 2 minute read

Brasil Foods SA posted its biggest gain in five months on speculation it will reach an agreement with the Brazilian anti-trust regulator to save the deal that created the company, reports Bloomberg.

Brasil Foods is offering to negotiate an agreement with the regulator to save the US$3.8 billion take-over about two years after the combination was formed from Perdigão SA's take-over of rival, Sadia SA.

Chief Executive Officer, Jose Antonio do Prado Fay, wants time to discuss possible solutions after commissioner Carlos Ragazzo said the company wields too much market power.

"We are ready to negotiate," Wilson Mello, vice president for corporate affairs at Brasil Foods, said earlier this week in Brasilia after the Cade postponement was made public. The company "fulfilled everything Cade has requested," he added.

Market experts told Bloomberg that Sadia may be forced to sell some of its other businesses for the deal to be approved.

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