Brasil Foods has signalled its interest in buying dairy assets owned by fellow Brazilian food maker Indústria de Alimentos Nilza.
In a filing with the Brazilian stock exchange, Brasil Foods said it had written to Nilza to indicate its “preliminary interest” in holding talks over a milk processing unit in Sao Paulo.
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Brasil Foods, which makes beef and poultry products and convenience foods like pizza and ready meals, said yesterday (25 May) that the “indicative value” of the potential acquisition was BRL60m (US$37m).
Nilza’s unit in Sao Paulo can produce 820,000 litres of UHT milk a day. It also manufactures cream cheese, butter and dairy drinks, Brasil Foods explained.
However, Brasil Foods also revealed that any acquisition was conditional on a legal appeal that Nilza has lodged over its recent bankruptcy.
“The potential negotiation of the unit’s acquisition is conditional on a series of legal and commercial matters, since Indústria de Alimentos Nilza filed for bankruptcy in January this year and is currently awaiting a ruling on the appeal that temporarily suspended the effects of said bankruptcy,” Brasil Foods said.
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By GlobalData“If the bankruptcy is reversed by a court ruling, the realisation of any acquisition of the unit will depend on commercial adjustments, legal and accounting audits and subsequent approval by the company’s committee of creditors.”
