On October 21st, the Federal Economic Competition Commission ("COFECE" for its acronym in Spanish) authorized Cargill Incorporated and Continental Grain Company, international leaders in the poultry production and distribution market, to jointly acquire Sanderson Farms Inc. for approximately US$4.53 billion.
In order to obtain the clearance from the COFECE, Sanderson Farms was advised by Basham, Ringe y Correa, S.C. (Mexico City offices). As result, it was approved the combination of Sanderson Farms and Wayne Farms businesses, allowing the creation of one of the main players in the North America poultry market.
In 2020, Sanderson Farms had sales for more than $3.56 billion dollars through its 13 internationally located processing plants. Wayne Farms had sales for $2.2 billion in 2020, with 11 processing plants. Through this concentration, Cargill and Continental will be able to expand their international and U.S. operations.
The closing of this transaction is projected for late 2021 or early 2022.
Lawyers:
Partner: Amílcar Peredo
Senior Associate: León Jiménez