Cargill expands in Brazil

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Heres a post I took off from ranchers.net-- Take it for what its worth- I sure would like to see a COOL law go into effect before we have to end up eating Brazilian meat.........Or Cargil starts passing off Brazilian as American.


Cargill Inc. said Wednesday it has signed a deal to buy Seara Alimentos SA, the third-largest meat packer in Brazil, to expand its international meat operations into South America's largest country.

News reports out of Sao Paulo pegged the value of the deal at about $130 million, which is a relatively modest acquisition of an established food company for Minnetonka-based Cargill.

Financial filings by the publicly traded Seara show that the company receives nearly two-thirds of its $650 million in annual sales from exports of branded pork and poultry products.

Cargill's Excel Corp. is the third-largest beef processor in the United States, with additional domestic operations in turkeys and pork. Abroad, Cargill has meat processing operations in Argentina, Canada, Central America, Europe, Thailand and Australia.

The acquisition is subject to regulatory review in Brazil. The proposal calls for Cargill to buy majority interest in the company from Bevrexas BV, a Dutch subsidiary of Mutual Investment Limited, and then acquire the remaining public shares through a tender offer in Brazil.

Seara was formed in 1956 and was formerly owned by a unit of Cargill agricultural rival Bunge Corp. before being spun off as a separate public company in 1989. It has nine meat processing plants in the southern half of Brazil, and now trades meat products to more than 70 countries.
 
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