JBS seeks full control of Pilgrim’s Pride

Brazil's JBS, the world's largest meatpacker, has proposed acquiring the remaining shares of Pilgrim's Pride, in a move seeking full control of the U.S. poultry producer. JBS has offered 2.086 of its own Class A shares for every Pilgrim's Pride share, valuing each Pilgrim's Pride share at $28.49. JBS's shares closed at $13.66 on Tuesday, while Pilgrim's Pride stock was trading at $28.49, both up around 1% in extended trading.

JBS currently holds about 82% of Pilgrim's Pride, which has a market capitalization of approximately $6.78 billion. The proposal must still be reviewed and approved by a committee of Pilgrim's Pride independent directors and minority shareholders. This move follows JBS's recent agreement to form a joint venture with Indonesia's sovereign wealth fund, Danantara, to explore protein production investments worldwide.

Pilgrim's Pride, for its part, recently agreed to buy Walker's Deli & Sausage Company for around $142 million. Earlier this month, JBS disclosed an unexpected quarterly net loss, primarily due to an antitrust settlement and debt tender offers as its U.S. beef business battles tight cattle supplies. Pilgrim's Pride, meanwhile, reported lower quarterly sales last month due to decreased chicken demand.