Brazilian meat packer Sadia has withdrawn its increased offer in the takeover bid for domestic rival, meat processor Perdagio.
Sadia increased its offer from 27.88 reais (€10.07) per share to 29 reais (€10.48) per share after the original offer encountered resistance from the Perdigao shareholders, who then rejected Sadia’s price offer for a second time. More than 55% of shareholders voted to reject the increased offer.
The acquisition would have helped move Sadia closer to its goal of fending off foreign takeovers and overtaking international rivals including Tyson Foods, Smithfield Foods and Pilgrim’s Pride, the world’s largest meat processors.
By acquiring Perdigao, Sadia could have become Brazil’s fourth-largest exporter with revenue from overseas operations totalling US$5.5 billion a year.