BRF announces moves in Chinese and Muslim markets
BRF seeks investors for a halal meat subsidiary and bought stake in COFCO.
Brazil-based BRF has announced strategic business moves into the meat markets of China and Muslim countries.
BRF buys stake in COFCO
BRF subsidiary, BRF GmbH, entered into a cornerstone agreement with COFCO Meat Holdings Limited. BRF has announced in a press release that the transaction was concluded, acquiring a total of 77.583.000 shares or 1.99% stake in COFCO. BRF originally informed the public of the company’s intentions in an announcement to the market disclosed on October 18.
This transaction is in line with the BRF strategic plan to create a more structured presence in the meat markets of China, a changing market that offers significant opportunities for growth, according to BRF. BRF GmbH signed an agreement with COFCO Meat where the parties agree to use their best efforts to actively seek ways to strengthen the strategic cooperation including the exchange of best practices in management and operation of the production chain, in better understanding the Chinese laws and regulations, and joint assessment of business opportunities in the meat markets of China.
COFCO Meat is a fast growing pork company in China with a vertically integrated business model operating across the entire industry value chain. COFCO Meat has 47 hog farms, two slaughtering facilities and two processed meat plants strategically located across China.
BRF seeks Sadia Halal investment
BRF also has formally engaged investment banks in relation to potential investment by third parties in Sadia Halal, announced BRF in a press release. BRF intends to create the new Sadia Halal subsidiary in an effort to put more a specialized focus on business relating to Muslim markets.
The move to engage investors follows an announcements to the market on June 30th and July 25th, 2016, in which BRF disclosed that it is considering potential strategic alternatives for Sadia Halal. BRF states that it will inform the market on any material developments in relation to the content herein.