Mr. Hayes told investors that the deal would help reduce "volatility" in Tyson's chicken business, and that Tyson could improve Keystone's profit margin by cutting costs. Keystone can also provide Tyson a platform to make a fresh push into markets like the Middle East, Africa and Europe, he said. Some analysts have warned another big deal could be risky for Tyson, depleting capital the company could spend buying back shares. The deal to combine two major meat suppliers to restaurants will face regulatory reviews in the U.S., China and elsewhere. Marfrig, which reached a deal in 2010 to acquire Keystone, said earlier this year that it would sell the company.

Source: Wall Street Journal August 20, 2018 17:15 UTC