February 15, 2012

Brasil Foods to incorporate Sadia

Sadia S.A will be integrated with Brasil Foods by the end of 2012, according to announcements by Brasil Foods.

Brasil Foods S.A. (BRF) has announced that, following the provisions of CVM (Brazilian Securities Commission) Instruction No 358/02 and Paragraph 4 of Article 157 of the Brazilian Corporations Act (Law No. 6.404/76), the company's management has decided that the wholly-owned subsidiary Sadia S.A. will be incorporated into its Parent BRF – Brasil Foods S.A. in 2012.

BRF explains that it holds all shares which represent the capital stock of Sadia S.A. The expected date of the merger is December 31, 2012.

The merger is part of the reorganisation which started between the two companies in 2009. Its main purpose is to accomplish the full integration of the BRF and Sadia businesses, seeking to maximise synergies and to rationalise activities, with consequent reductions in administrative and operating costs and increased productivity.