Cargill Limited and Better Beef Limited announced that the two companies have reached an agreement for Cargill to purchase beef processing and related assets operated by Better Beef Limited, headquartered in Guelph, Ontario.

The agreement is subject to normal government approval and other conditions typical of these types of transactions.

"This combination has broad benefits and is a natural fit," said Bennie deJonge, founder and president of Better Beef Limited. "We see this as an opportunity to further strengthen the Ontario and Canadian beef supply chain in these challenging times."

The combination is expected to enhance significantly product and service offerings for food customers and producers both in Canada and around the world. Cargill and Better Beef say they are committed to leveraging their experience and strengths to provide more value to suppliers and customers.

"As a company that has developed deep roots in Canada over the past 80 years, Cargill is committed to ongoing investment and a strengthening of the Canadian beef sector," said Bill Buckner, Cargill's corporate vice president and president of Cargill Meat Solutions. "This new development illustrates our commitment to not only enhancing our operations, but also solidifies our vision for value-added creation for our customers and producers."