Brazil-Meat Rivals may join forces.

BRAZIL-OLD MEAT TRADE RIVALS MAY JOIN FORCES.

Brazil’s largest meat processor, Sadia, said on Monday it was considering a business tie-up with Perdigao, another major meat processor and exporter.

Sadia said in a statement to the Sao Paulo stock exchange after the market closed that it was analyzing with Perdigao "the viability and the convergence of interests in some type of association."

It gave no further details on the type of cooperation being considered and said no agreement had been reached.

Sadia was among a handful of leading Brazilian companies that announced heavy currency losses as the global financial crisis roiled markets last year.

The company last year reported a third-quarter net loss of 777 million reais ($342 million) mainly from foreign exchange derivatives losses.

In 2006, Sadia tried to acquire control of Perdigao with a hostile takeover bid that was rejected by Perdigao shareholders.