Smithfield Foods stock has risen almost 10% after rumours have indicated that Brazilian meatpacker JBS would be interested in buying parts or all of the American swine producer and pork processor.
Citing unnamed market sources, the Brazilian news service Valor Economico reported that negotiations would be going on as JBS was said to be interested to buy Smithfield. Global press agency Reuters distributed that information.
All or part
Initially, JBS was said to be interested to buy all of Smithfield, worth US$11.2 billion. Industry observers also speculated that JBS could be interested in buying only part of Smithfield, such as its interest in Campofrio Food Group.
JBS, which bought a Smithfield subsidiary, Smithfield BeefGroup, in 2008, is trying to stay head of Brazilian beef competitor Marfrig, which has expanded globally thanks to as many as 38 acquisitions in three years.
Earlier this year, JBS CEO Joesley Mendonca Batista said if JBS made an acquisition in 2010 it would be ‘of an asset that expanded the company’s position outside the plant gate.’
Both Smithfield and JBS spokespeople declined to comment on the rumours.