July 26, 2017 / 11:17 AM / in a year

Cargill considering bid for JBS' Pilgrim's Pride, paper reports

SAO PAULO, July 26 (Reuters) - Global commodities trader Cargill Inc is considering bidding for Pilgrim’s Pride Corp, a U.S.-based chicken processor controlled by scandal-ridden Brazilian group JBS SA, newspaper O Estado de S. Paulo reported on Wednesday.

The report did not cite how it obtained the information. A JBS representative said the company will make a formal announcement “if and when there is something material to share.” An emailed request for comments from Cargill went unanswered.

JBS, the world’s largest meatpacker, purchased a controlling stake in Pilgrim’s Pride in 2009 for $2.8 billion, backed by a $2 billion loan from state development bank BNDES.

JBS is now rushing to sell assets and raise cash in order to help its holding company, J&F Investimentos SA, pay a big fine after becoming embroiled in sweeping graft probes that ensnared politicians and executives.

JBS said last month that its majority stake in Pilgrim’s Pride Corp is not for sale because it was critical to its long-term strategy of pursuing business opportunities that reduce volatility and enhance margins. (Writing by Bruno Federowski; Editing by Jeffrey Benkoe)

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