The sale of Tyson Foods’s Mexican/Brazilian poultry business will move forward and is expected to close soon. The Federal Economic Competition Commission approved the deal on Monday (June 1), according to a release from Tyson.
Tyson first announced the $575 million sale of its Mexican and Brazilian poultry division to Pilgrim’s Pride, a wholly-owned subsidiary of JBS S.A. in July 2014. The deal has been under review by the Mexican government since that time.
"We appreciate the attention and efforts of the Commission and will now move forward with Pilgrim's Pride to complete the deal," said Tyson President and CEO Donnie Smith. "We've not set a closing date but believe it will be soon."
The Mexican business, known as Tyson de Mexico, is a vertically integrated poultry business based in Gomez Palacio in North Central Mexico. It employs more than 5,400 people in its offices, three plants and seven distribution centers.
After the sale is completed, Tyson Foods said it will continue to serve customers in Mexico. The company will supply them with U.S.-produced chicken as well as chicken produced in Mexico, in part through a co-packaging arrangement with Pilgrim's Pride.