Big deal for poultry processors

American poultry processor Pilgrim's Pride has announced its acquisition of rival Gold Kist.

Reports state that the Texan based business has agreed to pay $21 in cash for each outstanding Gold Kist share, with both sides valuing the deal at about $1.1 billion. Pilgrim's Pride has also agreed to assume around $144 million in Gold Kist debt.

The merger is not only expected to create the world's leading chicken producer in terms of production, but in terms of revenue also create the third-largest US meat company. Pilgrim's Pride says it expects to find $50 million dollars in savings in the combined operations.

Pilgrim's Pride mounted a hostile bid back in August to take over its Georgia-based rival, but only recently announced that it had the backing of those who hold most of Gold Kist's shares.

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