JBS S.A. announced on Feb. 17 it would withdraw its offer to acquire the remaining shares of Pilgrim’s Pride’s poultry and pork business after the two sides could not agree to terms.
The Brazil-based company’s subsidiary, JBS USA, currently has an 80 percent ownership stake in Pilgrim’s and offered $26.50 per share in August 2021. A special committee of the board of directors at Pilgrim’s Pride responded it would not accept the offer unless the purchase price was increased.
In November 2021, JBS S.A. increased its per-share offer to $28.50, and the committee again declined the proposal. Share prices of Pilgrim’s Pride rose to $27 per share after the offer and briefly traded as high as $29.50 per share.
When news of JBS’ withdrawal was announced, Pilgrim’s stock price fell to $23.70. JBS first bought a majority stake in Pilgrim’s Pride in 2009, enabling the poultry firm to exit bankruptcy protection.
