Tyson de México approved for Pilgrim’s Pride acquisition

The Mexican Federal Economic Competition Commission has cleared JBS subsidiary Pilgrim’s Pride’s proposed acquisition of Tyson Food’s Mexican operations Tyson de México.

Commenting on the decision, Bill Lovette, chief executive officer of Pilgrim’s Pride, said: "Beyond growth, this transaction will also provide Pilgrim’s with geographic diversity in Mexico through the addition of new facilities in the northern part of the country to complement our existing facilities, enhance our portfolio through more value-added and branded products including the Del Día brand, and increase our total Mexico sales.

"Mexico is a key piece of our strategy and we view the country as a proxy of other developing economies’ future demand for higher protein consumption."

Donnie Smith, chief executive of Tyson Foods, added: "We appreciate the attention and efforts of the Commission and will now move forward with Pilgrim’s Pride to complete the deal. We’ve not set a closing date but believe it will be soon."

Tyson de México, a vertically integrated poultry business, has an estimated annual revenue of $650m, with the acquisition valued at $400m.

It was announced last July that Tyson Foods was to sell its Mexican and Brazilian poultry businesses to JBS subsidiaries, with JBS Foods, a subsidiary of JBS SA, is to acquire Tyson do Brazil.

According to a statement from Tyson Foods, the business will continue to serve customers in Mexico, following the sale. It will supply US-produced chicken as well as chicken produced in Mexico, through a co-packaging agreement with Pilgrim’s Pride.