Tyson Foods Reportedly Held Discussions to Buy Foster Farms

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Tyson Foods, the parent company of Jimmy Dean, has been in talks to buy Foster Farms for $2 billion according to sources familiar with the situation.

The unidentified sources, who spoke to CNBC, said that the two companies could not agree on the price and that the talks may potentially fall apart. If however a deal is reached, it is still at least several weeks away from happening.

Tyson shares were down almost 2% on the news but recovered slightly.

Not too long ago Tyson closed on its acquisition of Keystone Foods for $2.16 billion.

In the company’s last earnings call, newly appointed CEO Noel White remarked on Tyson’s global M&A strategy and said, “We’re forecasting about 90% of the growth in global protein demand will take place outside the United States. We do plan to participate in that demand growth…. My priority is no different than .. .my predecessors [which have been] … to grow our business in prepared foods, value-added products and in the international market, simultaneously working to provide stability with more of the commodity portions of our business.”

Tyson said it does not comment on rumors or speculation while a spokesperson for Foster Farms did not comment.

It was last month that Tyson said it is recalling 36,420 pounds of chicken nuggets that may be contaminated with pieces of rubber. According to the U.S.Department of Agriculture’s Food Safety and Inspection Service, the recall applies to 5-pound bags of ‘Tyson White Meat Panko Chicken Nuggets’.

Disclaimer: We have no position in Tyson Foods, Inc. (NYSE: TSN) and have not been compensated for this article.

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