Although both groups of shareholders would lose power within the new company (because they are transformed into one smaller portion of the same owners), know that the benefits of the agreement far outweigh this cost that must be paid. With this merger agreement, it gives rise to the emergence of a new company with leading positions in the industry of meat of poultry and pork, and with extended operations to other segments of food, including frozen pizzas, pasta, margarine and desserts. Worth mentioning that Perdigao has also an important dairy business, then acquire Brazilian companies raises and stadtholder. The combined company would have a market share of 50% in the processing of meat and margarine. Moreover, in segments such as pasta ready for cooking, the new company reached an 80% stake. The merger agreement that has just been concreted, occurs between two companies with serious global expansion plans. While both Sadia and Perdigao have noted negative results in the last quarter, it is true that these results are a consequence of the strong impact of the international financial crisis on external demand and increases in costs, but this has not affected the strength of both companies showing on their balance sheets. While the shares of both companies have experienced strong growth in its value since the end of the month of April, when it was revealed that the talks for the merger of both companies, had resumed the development potential that the new company can have on its policy of expansion into markets foreign nationals, which will be strengthened following the agreement, generates interesting perspectives for the value of these shares. The agreement between Sadia and Perdigao is but another example of the process of change which is observed in the sector Brazilian businessman who is leading to the emergence of large companies with an orientation to the transnationalization in search of lead worldwide markets in which they operate. In this crusade, Brazilian companies are not alone as they have an effective and committed support of the Brazilian Government is that the new model of support policies to imitate? Original author and source of the article.
By illini | Published December 21, 2014