PILGRIM'S Pride Corporation announced June 1 the Mexican Federal Economic Competition Commission cleared the proposed acquisition of Tyson Foods Inc's Mexican operations. The approval satisfied the final regulatory approval required for closing by the Commission, and Pilgrim’s Pride will now work with Tyson to complete the deal.
"We are excited to welcome members of Tyson de México to the Pilgrim's family," said Bill Lovette, chief executive officer of Pilgrim's. "Beyond growth, this transaction will also provide Pilgrim's with geographic diversity in Mexico through the addition of new facilities in the northern part of the country to complement our existing facilities, enhance our portfolio through more value added and branded products including the Del Dia brand, and increase our total Mexico sales. Mexico is a key piece of our strategy and we view the country as a proxy of other developing economies' future demand for higher protein consumption."
Tyson de México has an estimated annual revenue of $650 million and the acquisition was valued at $400 million. Following completion of the deal, Pilgrim’s Pride will continue to supply Tyson through a co-packaging arrangement.