Three years after merger, BRF’s market value has doubled
Three years after the merger of Sadia and Perdigão, creating the company, BRF-Brazil Foods is now worth twice what the companies were valued at before the deal. The market value of the business is around R$ 30 billion - double the R$ 15 billion at the end of the first trading day after the merger, on July 8, 2009.
Although there are still huge challenges, the market's perception indicates that the companies had to merge. BRF is appropriating the strengths of each company: the premium that investors attached to governance at Perdigão, and the premium that consumers pay for the Sadia brand in supermarkets.
BRF has also benefited from the momentum in the Brazilian economy. The increase in domestic demand has reduced the impact of the weakening international market. In the time since the merger, the Bovespa Index has risen from 49,177 points to 55,887 points, up 13.64%. The Consumer Sector Index has jumped from 976 points to 1,949 points, indicating investors' appetite for companies concentrating on the domestic economy.
Information provided by Valor Economico