Tyson Foods Inc. is nearing a deal to acquire Keystone Foods LLC, which supplies chicken nuggets to McDonald's Corp., Bloomberg News reported July 27, citing anonymous sources.
Keystone Foods is the U.S. subsidiary of Brazilian packaged food and meat producer Marfrig Global Foods SA. Tyson is reportedly in exclusive talks about a potential deal with Marfrig, which is looking to raise more than $3 billion from the sale of the business.
Tyson did not immediately respond to S&P Global Market Intelligence's request for comment.
Keystone operates in the U.S., South Korea, China, Malaysia, Thailand and Australia, according to the report.
Bloomberg previously reported that Marfrig was interested in selling Keystone, which has attracted interest from Cargill Inc. and China's Fosun International Ltd., among others.
Marfrig reportedly plans on using some of the proceeds from the sale of the business to pay for its acquisition of a controlling stake in National Beef Packing Co. LLC. The company hired JPMorgan Chase & Co. in May to find a single buyer, the news outlet reported.