JBS Drops Bid for All of Pilgrim's Pride

Feb. 18, 2022
Brazilian meat company already owns 80 percent of the American poultry company.

In a sometimes acrimonious pursuit that began last August, Brazilian meat giant JBS SA, which already owns 80% of the stock of Pilgrim’s Pride Corp., on Feb. 17 withdrew its final offer to acquire all of the American poultry company.

"JBS withdrew its offer after it was unable to come to an agreement with the Special Committee of the PPC Board of Directors regarding the terms of the proposed transaction," the Brazilian company reported to interested financial parties late on Feb. 17.

JBS began bidding for the poultry company last August at $26.50 per share in cash. At the time, Pilgrim's stock price had eclipsed $27 a share for the first time since late 2019. It stayed above $27 throughout the process and hit a high of $29.50, perhaps buoyed by JBS's interest.

The Brazilian suitor raised its offer to $28.50 a share in mid-November. Still, Pilgrim's Special Committee said no.

When news of JBS's withdrawal spread today (Feb. 18), Pilgrim's stock price fell to $23.70 at midday. It had closed on Feb. 17 at $27.83.

JBS first bought a majority stake in Pilgrim's Pride in 2009, enabling the poultry firm to exit bankruptcy protection.

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