Brazil's Marfrig To Sell US Unit To Tyson For $2.5B, Sources Say

SAO PAULO – Brazilian meatpacker Marfrig Global Foods SA (MRFG3.SA) has agreed to sell its U.S. subsidiary, a key McDonald’s supplier, to Tyson Foods Inc (TSN.N) for $2.5 billion, two people with knowledge of the matter told Reuters on Friday.

Marfrig shares rose as much as 8 percent but reversed gains and were down 7.3 percent at 6.38 reais as investors reassessed the price of the deal. Tyson rose 1.2 percent to $61.71.

In a note to clients, Itaú BBA equities team said the news is “negative for the stock,” as the market hoped for a higher valuation of up to $3 billion, for chicken processor Keystone Foods. The bank kept its “underperform” rating on Marfrig.

To read the rest of the story, please go to: Reuters