The trade war between the United States and China has lasted for more than one year — and a resolution is nowhere in sight.World Economyread more
The Fed is expected to cut rates Wednesday, but it is unlikely to tell markets what they want to hear on future rate cuts.Market Insiderread more
Pelosi said Trump should not have tried to address China's trade practices in a way that opened Americans up to financial pain.Politicsread more
Investors await the Fed's latest decision on monetary policy, set to be released on Wednesday stateside. The U.S. central bank is widely expected to cut rates by 25 basis...Asia Marketsread more
TransferWise posted an annual net profit of £10.3 million on revenues of £179 million.Technologyread more
Live the high life with a night's stay at Highclere Castle, the iconic stately home made famous by Downton Abbey.Spendread more
Large banking institutions face the risk of failure if interest rates in Europe continue to stay negative, warns the global chief economist of the Economist Intelligence Unit.Banksread more
The fallout from two fatal crashes of Boeing 737 Max planes has ensnared the manufacturer's most-loyal customer: Southwest Airlines. The carrier has canceled thousands of...Airlinesread more
Brent crude oil jumped the most in history in the previous session after attacks on Saudi's oil industry disrupted the kingdom's production.Marketsread more
In the survey, conducted after the third in the Democratic Party's series of debate, the former vice president draws 31% compared to 25% for the Massachusetts senator. At 14%,...2020 Electionsread more
Stocks rose slightly on Tuesday, but gains were capped as the Federal Reserve kicked off a two-day monetary policy meeting.US Marketsread more
(Adds context, banks in discussions to get the mandates)
SAO PAULO, May 30 (Reuters) - Brazilian food processors BRF SA and Marfrig Global Foods SA on Thursday announced exclusive talks for a potential tie-up that would create one of the world's largest meat producers, according to securities filings.
A deal could combine BRF's poultry business, which leads the world in chicken exports, and Marfrig's beef business, which is second to JBS SA globally. Their combined market cap was 27.8 billion reais ($7 billion) at Thursday's market close.
Two people with knowledge of the talks said they are expected to reach an all-share deal, with no cash payments.
Two other sources close to the companies said their aim is to create a complete protein portfolio to compete with global giants such as Tyson Foods Inc and JBS.
The companies said they were entering a 90-day negotiation period to define the terms of a deal, but an initial valuation suggested BRF shareholders would hold a stake of roughly 85% in a combined company, with the rest held by Marfrig shareholders.
BRF and Marfrig were attracted by their complementary geography too, according to the sources, who requested anonymity to discuss the confidential talks. BRF has a strong presence in the Brazilian market and exports mainly fresh poultry. Marfrig has a stronger U.S. presence after acquiring National Beef last year.
Another person close to the companies said they could reap cost savings of up to 5.5 billion reais over four years.
That source said the combined company would be the world's fourth-largest meatpacker after JBS, Tyson and China's WH Group Ltd.
Banks have not yet been formally hired, but BRF is expected to hire Citigroup Inc and Marfrig is seen hiring JPMorgan Chase & Co, according to two of the sources. Citi and JPMorgan did not immediately respond to requests for comment.
A deal could help with BRF's heavy debt load and struggle to regain an investment-grade credit rating. BRF's debt is 5.6 times its earnings before interest, tax, depreciation and amortization (EBITDA). A combined company with Marfrig will have a 3.1 ratio, one of the people said.
BRF shares have fallen in each of the past four calendar years and are down nearly 60% from their 2015 peak, as a mega-merger in 2009 failed to yield promised results and a private equity-led shakeup led to three consecutive annual losses.
Marfrig shares are broadly flat over the same period, while shares of rival JBS have nearly doubled so far this year. ($1 = 3.9816 reais) (Reporting by Carolina Mandl and Tatiana Bautzer and Ana Mano in Sao Paulo Additional reporting by Anthony Boadle in Brasilia Editing by Brad Haynes, James Dalgleish and Matthew Lewis)