SÃO PAULO, Brazil – BRF announced plans to purchase shares in COFCO Meat Holdings Ltd., a subsidiary of Beijing, China-based COFCO Corp., for $20 million. COFCO Corp. plans to list the subsidiary on the Hong Kong Stock Exchange on Nov. 1.
The two companies also signed a non-binding memorandum of understanding in which “the parties agreed to make their best efforts to actively seek ways to strengthen strategic cooperation between COFCO Meat, COFCO and BRF GmbH, including the exchange of best practices in the management and operation of the production chain, good practices in compliance with Chinese laws and regulations and evaluation of collaborative opportunities.”
COFCO Meat is a vertically integrated swine producer and processor based in China. As of Oct. 9 the company owned 47 swine farms, two slaughter plants and two processed meat plants throughout China.
BRF Brasil is one of the largest food companies in the world with 35 plants in Brazil, 16 plants overseas and 40 distribution centers. The company manufactures food products under the Sadia, Perdigão, Qualy, Perdix and Paty brands and currently exports to more than 120 countries.