Deals

Tyson's Potential Keystone Deal May Face Scrutiny, Mizuho Says

  • Analyst cites potential for ‘significant competitive concerns’
  • Tyson is said to be close to acquiring Keystone from Marfrig

Photographer: Andrew Harrer/Bloomberg

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Tyson Foods Inc.’s potential purchase of U.S. chicken-nugget maker Keystone Foods LLC may spur "significant competitive concerns” over consolidation in the poultry industry, Mizuho Securities USA analyst Jeremy Scott said in a note.

Tyson is in exclusive talks to buy Keystone, a U.S. supplier of chicken nuggets to McDonald’s Corp., from Marfrig Global Foods SA, people familiar with the matter told Bloomberg on July 27. Springdale, Arkansas-based Tyson is one of four big companies that together already control more than half of U.S. chicken output.