Brasil Foods SA said Monday it hopes to begin discussions with antitrust regulators about potential asset sales as it seeks approval for taking over Sadia SA, reported Bloomberg. Brasil Foods SA was formerly known as Perdigao SA. Brasil Foods Chief executive officer Jose Antonio do Prado Fay said he expects regulator Cade to approve the takeover in the first quarter of next year.

In July 2009, the company bought Sadia after its smaller rival recorded more than 3 billion reais (US$1.7 billion) in derivative losses in 2008. Before approving the takeover, the antitrust arm of

Brazil’s Finance Ministry recommended Cade require the food maker to sell assets or license one of its two main brands.

In late June, the ministry said the licensing of either the Sadia or Perdigao brand should be for a minimum of five years. The company plans to increase prices between 5% and 7% in the domestic market by the beginning of 2011 after a surge in the prices of corn and soybeans increased the cost of feeding its poultry.  Fay said Brasil Foods exports will probably increase 3% to 5% in 2011 due to demand from the Middle East, Africa and Latin America.

With over 60 years in the market, Sadia has 44,000 employees with sales that have continued to grow at an impressive rate exceeding US$3.5 Billion in 2005. Sadia is the largest poultry producer in Brazil and one of the world’s leading producers of chilled and frozen Foods. Today approximately 50 per cent of the volume is exported to more than 100 countries making Sadia Brazil’s largest exporter of meat based products.

In 16 plants Sadia produces annually over 2.5 million tons of chicken, turkey, pork and beef protein based products (frozen and chilled), besides an extensive range of Added Value Convenience products, such as Ready Meals, Pizza, pasta, margarine and desserts.

Brasil Foods S.A. (BRF) is a food company with a focus on the production and sale of poultry, pork, beef cuts, milk, dairy products and processed food products. The Company produces 3000 stock-keeping units (SKUs), which it distributes to customers in Brazil and in more than 140 other countries.

The products of the Company include frozen whole and cut chickens, frozen pork cuts and beef cuts, processed food products, milk, and soy meal and refined soy flour, as well as animal feed.