JBS Makes Bid to Acquire Remaining Stake in Pilgrim’s Pride
Brazil-based JBS has announced its intention to acquire the remaining stake in Pilgrim’s Pride, a U.S. chicken producer, in its latest bid to gain full control of the company. JBS currently owns 82% of Pilgrim’s Pride and is offering a fixed exchange ratio of 2.1 shares of JBS stock for each share of Pilgrim’s stock.
This move comes as meatpackers are experiencing increased profits from chicken, while beef costs remain high. JBS had previously attempted to acquire Pilgrim’s Pride in 2021 with an offer of $28.50 per share, but the deal fell through due to disagreements over price.
If the acquisition goes through, Pilgrim’s Pride would be de-registered from Nasdaq. JBS believes that combining the two companies would create a simplified organizational structure and generate cost savings. Shareholders would benefit from being part of a larger, more diversified global multi-protein and prepared foods platform.
However, a bid for the second-largest chicken producer in the U.S. could face antitrust concerns, especially in light of the Trump administration’s focus on foreign control of agricultural assets. JBS expects the proposal to be subject to approval from Pilgrim’s shareholders and an independent special committee appointed by the PPC Board of Directors.
JBS Chairman Jeremiah O’Callaghan stated, “We believe this proposal offers PPC stockholders the opportunity to continue participating in PPC’s future performance through ownership of JBS shares, with exposure to a larger and more diversified global business.”