Sadia And Perdigao Consider Tie-Up

Brazilian meat processor Sadia has held talks with local rival Perdigao over a possible tie up which has prompted speculation that the two companies could merge. Sadia is under pressure to recapitalise after recording big losses due to disastrous currency hedges. The merger would create one of the world's largest food firms and lead to operational synergies at a time when global demand for animal protein is falling. However, Perdigao has so far managed to astutely traverse the difficult financial environment and is unlikely to enter into any deal that would threaten its strong balance

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