SAO PAULO (AP) -- Brazilian media say two of Latin America's biggest food companies are merging in a stock swap deal prompted by the global financial crisis.
Representatives for meat and food companies Perdigao SA and Sadia SA declined to comment, but the Agencia Estado news service and other outlets say an announcement is expected on Monday. They cited unnamed sources close to negotiations.
A merger of Sadia and Perdigao would make a regional powerhouse with annual revenue of $10.6 billion. Analysts predict regulators will back the deal.
Sadia sought a partner after losing nearly US$400 million on bad currency bets after Brazil's real tanked last year. Those losses alone surpassed the company's 2007 profits.