JBS bids to take full control of Pilgrim's Pride

The European Union has blocked $2 billion in Brazilian meat, poultry, fish, and other products due to antibiotic oversight concerns. Brazil disputes the timing and criteria, threatening WTO action. Poultry and honey may resume within weeks, but beef could take two years. The freeze coincides with unresolved EU-Mercosur trade pact negotiations.

Shares of JBS and Tyson Foods fell 1.4% and 1.5% respectively after President Trump's executive order allowing ranchers to process their own beef. The order also includes measures to protect cattle herds and require country of origin labeling for imported beef.

JBS, controlling 82% of Pilgrim’s Pride (PPC), proposed a non-binding offer to buy the remaining 18% shares. The deal, valued at $28.49 per share, requires approval from PPC’s board and shareholders. If completed, PPC would delist from Nasdaq. JBS cited PPC’s growth and global presence as reasons for the bid.

The EU suspended Brazilian beef imports starting September 3 due to antibiotic concerns, affecting $1.8B in annual trade. Meanwhile, the US allowed 300,000 metric tons of Brazilian beef trimmings over 90 days to reduce domestic prices. JBS, a major meatpacker, met with Trump before the US decision, raising questions about influence.

President Trump proposed regulatory changes to empower ranchers to process their own meat, aiming to challenge the dominance of large meatpacking firms. The move, announced on social media, follows record beef prices and USDA data showing four firms control 85% of cattle procurement. Tyson Foods and JBS shares fell over 2.5% in premarket trading. The USDA also allocated $500 million in aid for smaller beef producers. The policy aims to increase competition and potentially lower beef prices, with

JBS NV offered to acquire the remaining 18% of Pilgrim’s Pride Corp. it doesn’t own in a $1.2B stock deal, aiming to simplify its structure and improve capital allocation. Pilgrim’s shares rose 8.8% in after-market trading. Meanwhile, cattle futures saw mild short covering, with live cattle up $0.15 and feeder cattle up $0.40. USDA reported lower cash cattle trading last week, averaging $228.52, down from $235.21 the prior week.