Brasil Foods' acquisition of Sadia progresses
November 24, 2010
by Meat&Poultry Staff
SÃO PAULO, Brazil – Touted as the world’s largest poultry exporter, BRF-Brasil Foods SA said it hopes to begin discussions with antitrust regulators about potential asset sales as it seeks approval for taking over Sadia SA, according to Bloomberg. Formerly known as Perdigao SA, Brasil Foods expects regulator Cade to approve the takeover in the first quarter of next year, said Jose Antonio do Prado Fay, CEO.
In July 2009, the company bought Sadia after its smaller rival recorded more than 3 billion reais (US$1.7 billion) in derivative losses in 2008. Before approving the takeover, the antitrust arm of Brazil’s Finance Ministry recommended Cade require the foodmaker to sell assets or license one of its two main brands.
In late June, the ministry said the licensing of either the Sadia or Perdigao brand should be for a minimum of five years. The company plans to increase prices between 5% and 7% in the domestic market by the beginning of 2011 after a surge in the prices of corn and soybeans increased the cost of feeding its poultry.
Fay said Brasil Foods exports will probably increase 3% to 5% In 2011 due to demand from the Middle East, Africa and Latin America.