Tyson Foods Inc, the largest US meat producer, agreed to buy chicken nugget maker Keystone Foods LLC for about US$2.5 billion, a person familiar with the matter said.
Brazil’s Marfrig Global Foods SA, which is selling Keystone, would retain a US hamburger factory, said the person, who asked not to be identified because the transaction has not been formally announced.
The price of the deal is less than the US$3 billion initially expected after conditions in the US chicken market deteriorated, they said.
Demand in the US has softened and domestic supply has risen, Tyson said earlier this month.
Springdale, Arkansas-based Tyson and Marfrig declined to comment on the deal.
The Keystone deal comes at a time when US producers are grappling with weakening meat prices amid higher supplies and import tariffs imposed by China and Mexico in retaliation against US duties on metal shipments.
Keystone, which supplies nuggets to McDonald’s Corp, had revenue of US$2.8 billion last year.
It has operations in seven US states, as well as in South Korea, China, Malaysia, Thailand and Australia.
While its US assets account for about 70 percent of sales, the food service company has experienced stronger growth from its Asian arm.
Besides Tyson, Keystone attracted bids from Cargill Inc, China’s Cofco Ltd (中糧) and an unidentified Japanese firm, two people with direct knowledge of the matter said in June.
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01