Two of Brazil’s largest food manufacturers, Perdigao and Sadia, have claimed their plans to merge would create an “international powerhouse” in the food industry.
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The new company, Brasil Foods (BRF), would generate around BRL22bn (US$10.7bn) in annual revenue.
With 42 plants and a workforce of almost 120,000 employees, BRF would leapfrog Tyson Foods to become the world’s largest poultry producer. BRF would also have a strong presence in the pork and beef markets and a dominant position in Brazil’s frozen and prepared meal categories.
“It is a great transaction and it is a very simple one as well. We will create one of the largest and most efficient food companies in the world,” Perdigao CEO Nildemar Secches said during a conference call yesterday (19 May) to announce the group’s plans.
Secches indicated that the new company would focus on expanding its international operations, exploiting Sadia’s access to various international markets.
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By GlobalDataThrough the deal, BRF will gain the financial strength “to grow mainly in international markets”, Sacches said.
“We will be a very powerful export house, exporting to more than 110 countries,” Sacches emphasised.
Under the transaction, Perdigao shareholders will control 68% of the new enterprise. Sadia will operate as a 100%-owned subsidiary of Perdigao, management added.
