Tyson to take advantage of credit crunch
Reports state that Tyson Foods Inc, the biggest US meat producer, has
announced that it plans to purchase domestic companies and expand
internationally as the global credit crisis is taking its toll on financial
markets, reducing the cost of potential acquisitions.
Ready to take advantage of
"We've got about US$1.5 bln in the bank ready to take advantage of
opportunities, whether they're domestic or they're in the 3 growth countries:
Brazil, China and India," stated Chairman John Tyson.
The global credit crunch has resulted in financial markets taking a dive,
with the MSCI World Index recently losing 20%, the most since records began in
1970. Shares of food and commodity-related companies have been hit hard as
concern economic growth will slow caused a slump in raw-material prices such as
grains and investors to shy away from riskier assets.
Take this chance to expand
Renee Tai, a consumer-goods analyst at CIMB-GK Securities Pte in Hong Kong:
"It's a smart move for Tyson as asset valuations have fallen a lot across the
board and may come down further. Companies that have a lot of cash, like Tyson,
can take this chance to expand into new markets or increase market share at a
No acquisitions mentioned
Tyson may possibly purchase poultry interests in the US and it may also
purchase plants that prepare beef and pork products, Tyson stated, without
identifying possible acquisitions. "There's a Wall Street problem, and the rest
of the country is running better than I think people are giving credit
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