Brasil Foods to trade assets with Marfrig
Brasil Foods upholding antitrust agreement, conditions of merger
Brazil food processor Brasil Foods will swap assets with Marfrig Alimentos as part of Brasil Foods' July agreement with antitrust regulators. The antitrust agreement came as the result of a merger of meat processors Perdigao SA and Sadia SA, which formed Brasil Foods.
Brasil Foods will transfer distribution centers, a pork processing plant, properties and the rights of the brands it must shed under the requirements of the agreement. The company will also turn over a 65% stake in food company Excelsior Alimentos. In return, Marfrig will transfer assets from the Paty brand in Argentina and the brand's commercial operations in Uruguay and Chile, pork pens and rural properties, as well as 200 million Brazilian reais (US$111 million).
The agreement must still be approved by antitrust regulators.