Companies in the commodity food sector are beginning to aggressively pursue deals for branded foods which are more profitable than commodity products. Two days after Pilgrim’s Pride’s $6.4 billion takeover offer for Hillshire Brands, Tyson Foods outbid the company offering $6.8 billion. Riding on high chicken prices and low feed costs, meat companies are making acquisitions and other branded food companies such as Jack Links may soon find offers being made. Hillshire had recently made an offer for Pinnacle Foods which it is expected to withdraw in the face of the two offers from Pilgrim’s Pride and Tyson as both offers are contingent on the deal’s cancellation. To read more about the movement in the branded meats sector:
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