JBS makes new bid for full control, delisting of Pilgrim's Pride

JBS agreed to buy a majority stake in Pilgrim's Pride in 2009 and tried to purchase the remaining shares of the U.S. firm in 2021. It later withdrew the proposal — in an all-cash deal, unlike the current stock-for-stock bid — after the two companies failed to agree on a price.

Pilgrim's Pride has a market capitalization of about $6.8 billion, and its shares were down some 27% year-to-date, having last week reached their lowest intraday level since February 2024.

At the same time, JBS' shares, which since last year are listed on the New York Stock Exchange, were down some 5% this year, resulting in a market cap of $14.6 billion.

JBS said the deal would lead to a simplified organizational structure, eliminating Pilgrim's standalone public company costs and giving more flexible and efficient capital allocation across the group.

The proposal is non-binding, and it is subject to review and approval by a committee of Pilgrim's Pride's independent directors, and by its minority shareholders, JBS said.

Earlier this month, JBS announced Wesley Batista Filho as new chief executive effective 2027 and an agreement to form a joint venture with Indonesia's sovereign wealth fund.

The proposal also comes days after Pilgrim's Pride's agreement to acquire Walker's Deli & Sausage Company for about $142 million.

Pilgrim's Pride shares rose 7% in extended trading, with JBS up around 1%.

JPMorgan analyst Lucas Ferreira said he viewed the deal as positive from the standpoint of valuation between the companies.

"JBS shares are now better currency than cash for this purpose as relative value between the two entities look favorable and it does not pressure the balance sheet," he wrote in a note.