Brazil-Meat Merger could be close.

BRAZIL-MERGER COULD BE CLOSE.

Brazilian meat processing company Sadia SA is mulling over a tie-up with rival company Perdigao SA, Reuters reported on 17 March 2009.

In a statement to the Sao Paulo stock exchange, Sadia pointed that it was studying a potential "convergence of interests in some type of association" without revealing any further details. Like other major Brazilian companies, Sadia also booked significant losses last year triggered by the global financial turmoil.

In 2006, Sadia launched a takeover bid for Perdigao which, however, failed as Perdigao shareholders rejected it.