Marfrig / BRF asset swap to be in three stages
The deal stipulated that in June BRF will get Quickfood in Argentine from Marfrig, which owns the Paty brand, the market leader in burgers in that country, and BRF will hand over to Marfrig three of its ten processed meat plants stipulated by the arrangement. In the second stage, in July, Marfrig will get five more plants, and in the third stage, in August, it will get the two remaining plants.
Besides the ten processed meat plants, BRF will transfer the brands Rezende, Wilson, Texas, Tekitos, Patitas, Escolha Saudável, Light Ellegant, Fiesta, Freski, Confiança, Doriana and Delicata to Marfrig. The agreement also provides for the transfer of two pig slaughterhouses, two poultry slaughterhouses, four feed mills, 12 chickens farms, two hatcheries and eight distribution centers. In the case of the pig unit in Carambeí (Paraná state), Marfrig will initially have a lease with an option to buy secured at R$ 188 million. Marfrig will also get Sadia’s 64.57% stake in Excelsior Alimentos and all the contracts with integrated farmers.
With the new assets, Marfrig will see its market share in Brazil for processed meats increase from 9% to 21%, creating a strong competitor for BRF, as expected by CADE. It is also expected to increase net turnover by R$ 1.7 billion. Last year it turned over R$ 21.8 billion net.
Information provided by Valor Economico