Brazil’s antitrust regulators have confirmed they will support the merger that created Brasil Foods, the world’s largest poultry exporter.
The country’s competition watchdog Cade has endorsed a plan that will see Brasil Foods sell production assets, offload brands and restrict its use of products under the Perdigao brand in return for the deal being approved.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Brasil Foods will sell 80% of flagship brand Perdigao’s production capacity, while the deal will prevent the company selling some products under the brand for between three and five years.
The deal will also see Brasil Foods sell some 13 other brands, including Doriana, Delicata, Rezende and Wilson.
The compromise will stop a forced breakup of Brasil Foods, which was formed from the 2009 merger between debt-ridden Sadia with rival Perdigao.
At the end of June, Cade voted against the merger but suspended a final decision until a further review was undertaken.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataFollowing the announcement, Brasil Foods’ share price was up 9.38% at the close of the Brazilian stock exchange yesterday to BRL28.45 a share.
