Proposed Merger of Perdigao and Sadia Case Solution & Answer

In April 2009, considering the acquisition of Perdigao and Sadia merge the two companies. The swap of shares provided between two of the largest food companies in Brazil Perdigao significantly increase their participation in the national and international market and become one of the best players in the world in the food production industry, while leading profit margins benefiting from synergies. However, Sadia had a huge debt in the short or long it was unlikely to be able to keep. Students must determine whether Perdigao must acquire Sadia, the basis of the proposed share exchange, and to assess whether the debt resulting from the combination of both companies is manageable.
by
Deborah Terayama,
James E. Hatch
Source: Ivey Publishing
20 pages.
Date Posted: April 23, 2012. Prod #: W12892-PDF-ENG
Sadia and Perdigao Merger Case Solution

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