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There goes one of the big boys....

Kato

Well-known member
http://money.cnn.com/news/newsfeeds/articles/apwire/10115044fd5fc49db9971d35f1c8aa30.htm

NEW YORK (Associated Press) - Tyson Foods Inc. said Wednesday it signed a letter of intent to sell its beef processing operations in Canada to XL Foods Inc. for 107 million Canadian dollars ($105.4 million)

Tyson Foods, of Springdale, Ark., said the business no longer fits its long-term international strategy which is focused primarily on Asia, Mexico and South America.
The operations to be sold, the largest beef processing business in Canada, include the packing, feedyard and fertilizer assets of Lakeside Farm Industries Ltd. The business employs 2,300 workers.

XL Foods, part of the Nilsson Bros. Group, said Lakeside complements its existing operations.

The companies expect to close the deal by the end of September. It remains subject to financing, regulatory approvals and a definitive agreement.

And then there were two ...........................
 
A

Anonymous

Guest
Grab the money and run- thats the second thing taught in business schools anymore behind the #1 class- Forget honesty- and morality- Screw everyone every way you can if you can make a buck......

Won't be long and you'll all be working for "the company store"...
 

DiamondSCattleCo

Well-known member
This doesn't come as a real big surprise. Some say Tyson funded the Nilssons before they went on their big purchasing spree a few years back.

Its time for us Canadians to make some calls to our MPs and remind them of their obligations under the Competition Act.

Rod
 

DiamondSCattleCo

Well-known member
The following is the header of the petition that I will be circulating tomorrow:

Elected representatives, we urge you to stand up for the residents and cattle producers of Canada.

Our cattle industry currently suffers from a high degree of concentration in the beef packing industry. Combined with vertical integration, environmental factors and high commodity prices in the grain industry, this concentration has helped to fuel further depression of fat and cull cattle prices.

The proposed sale of Tyson Foods Inc. beef production facilities to XL Foods Inc. means that over 80% of Canadian cattle will effectively be held captive by two large international packing companies. This will only result in a less competitive business atmosphere and make it even more difficult for a beleaguered cattle industry to recover in these difficult times.

Therefore, the undersigned request that existing competition laws be enforced and the sale of Tyson Foods Inc. beef production facilities NOT be allowed to proceed.
 

DiamondSCattleCo

Well-known member
So please, either copy the above, or make a better one, but get some petitions cycling out there. Send them to your MLAs, your MPs, your CCA reps, anyone whose address you can find and that might listen. Send it to the opposition parties. Lets make some noise.

Maybe it won't help, but take a couple hours out of your day to try and make some kind of difference.

Rod
 

Kato

Well-known member
I was reading an article yesterday in the Co-operator about Tyson crying the blues over losing a lot of money. I suspect this sale is involved in that. They are looking for greener pastures to plunder. That being said, if the sale was blocked, would they shut the plant instead? I bet they would threaten to, and then demand money to keep it open. Corporate welfare strikes again.

Either way, we lose.

If we are going to jump all over this and try and block the sale, we should also go the next step and find an alternative purchaser, preferably a Canadian one, and preferably producer backed.
 

Sandhusker

Well-known member
I'm not Canadian, but it seems to me that your government has a golden opportunity to reverse some damages by guaranteeing the funding of a purchase by Big C or some similar group. It's time they did something for the people that would actually do the whole country some good.
 

QUESTION

Well-known member
The sale is being looked at by the Competition Bureau. If Nilsson's are allowed to buy lakeside they will control 46% of the nations slaughter capacity. In a sound bite from CB board members suggested that have that control of buying and selling of cattle thru the auction yards would constitute a monopoly and the CB won't allow that. It sounded like the CB would allow the Nilssons to buy Lakeside but they would have to sell the auctioneering and stockyard assets. Both Nilsson's and Tysons will have to make presentations to the CB in order for the sale to be allowed to proceed. Let's see if Nilsson's really want to be in the packing business if they have to sell off the auctioneering and auction yards. As for other possible buyers for Lakeside you genereally don't find things you are not looking for them.
 
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