JBS has made a fresh bid to acquire the remaining stake in Pilgrim’s Pride in a move that could face antitrust scrutiny.
The Brazil-based meatpacking giant submitted an offer to buy the 18% of Pilgrim’s Pride it doesn’t control, proposing a fixed exchange ratio of 2.1 JBS shares for each Pilgrim’s share. JBS closed at $13.66 per share on Tuesday, while Pilgrim’s Pride traded at $28.49. The offer is slightly above its 2021 bid of $28.50 per share, which JBS later withdrew after failing to reach an agreement.
Deal terms and potential savings
JBS currently owns 82% of Pilgrim’s Pride, a stake it acquired in 2009 after the poultry company filed for bankruptcy. If the deal closes, Pilgrim’s would delist from Nasdaq, simplifying its corporate structure and cutting costs tied to being a standalone public company.
The company framed the bid as beneficial for shareholders, arguing they’d gain exposure to a “larger, more diversified global multi-protein and prepared foods platform.” In a statement, JBS chairman Jeremiah O’Callaghan said the proposal would let Pilgrim’s investors “continue participating in PPC’s future performance through ownership of JBS shares.”
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JBS has seen stronger profits from chicken in recent years, even as high beef costs have weighed on its bottom line. The bid reflects a strategic push to consolidate control over one of the largest U.S. poultry producers, second only to Tyson Foods.
For JBS, full ownership could streamline operations and eliminate redundancies. But the deal’s success hinges on shareholder and regulatory approval—a hurdle that may not be easy to clear.
This isn’t the first time JBS has tried to take full control. The company abandoned a similar bid in 2021 after negotiations stalled. The current offer arrives amid heightened scrutiny of foreign ownership in U.S. agriculture.
Antitrust concerns loom
The bid could draw attention from U.S. regulators, particularly as the Trump administration increasingly targeted foreign control of agricultural assets. Last year, the Justice Department launched an antitrust investigation into beef producers, following criticism from former President Donald Trump, who accused foreign-owned packers of manipulating prices.
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JBS acknowledged the regulatory risks, noting in its statement that the proposal would require approval from Pilgrim’s shareholders and a special committee of “independent and disinterested directors” appointed by the board.
The deal’s fate may depend on whether regulators view it as further concentrating an industry already dominated by a handful of players.
JBS did not immediately respond to requests for further comment on the bid’s timeline or next steps.
