Pilgrim’s Pride Corporation (NASDAQ:PPC) stock jumped 6.9% in premarket trading on Wednesday after JBS N.V. (NYSE:JBS) put forward a non-binding proposal to purchase the remaining roughly 18% of Pilgrim’s Pride that it does not already control.
Under the terms presented by JBS, which already holds approximately 82% of PPC, each Pilgrim’s Pride share would be exchanged for 2.086 shares of JBS Class A common stock. JBS said that the proposed fixed exchange ratio is based on the closing share prices on August 18, 2026 - $13.66 for JBS and $28.49 for Pilgrim’s Pride.
The proposal is contingent on a number of governance and shareholder approvals. It requires a recommendation from a special committee of independent and disinterested directors that the PPC Board of Directors is expected to appoint. In addition, the transaction must be approved by a majority of the votes cast by PPC shares not owned by JBS or its affiliates, and it is subject to customary closing conditions.
"For over 16 years, JBS and PPC have worked together as PPC has expanded its operations, strengthened its global presence and significantly grown revenue," said Jeremiah O'Callaghan, Chairman of the JBS Board of Directors. "We believe this proposal offers PPC stockholders the opportunity to continue participating in PPC’s future performance through ownership of JBS shares, with exposure to a larger and more diversified global business."
JBS noted several potential advantages it expects from the transaction if it is completed. These include continuing shareholder participation in Pilgrim’s Pride's performance within a larger multi-protein platform, a simplified corporate structure with cost savings from eliminating standalone public company expenses, and improved trading liquidity tied to JBS’s larger market capitalization.
If the deal is completed, Pilgrim’s Pride shares would no longer trade on the Nasdaq and the company would be deregistered. The proposal, as presented by JBS, does not require approval from JBS shareholders.
Citi is serving as financial advisor and White & Case LLP is serving as legal advisor to JBS.
Market context note: The filing and proposal triggered notable market reaction in early trading; separate intraday indicators shown at one point in trading referenced Pilgrim’s Pride moving higher by around 10.49% and JBS up approximately 1.4%.