March 10, 2008

Brazil's Marfrig announces successful acquisition of Pena Branca
 

Brazilian meatpacker Marfrig has beaten Tyson Foods in an acquisition race, as Marfrig successfully acquired a controlling stake in Pena Branca, a poultry processor in Sao Paulo.

Marfrig acquired Pena Branca for US$53 million, with the acquisition laying the stones for its first poultry venture. Pena Branca is one of the leading whole frozen chicken brands in Sao Paulo, and it processes about 300,000 chickens daily.

Tyson was believed to be close to tying up the acquisition of Pena Branca, which could cost the US meat processing giant about BRL 130 million (US$74.2 million). However, Marfrig has beaten them to it and Tyson's attempt to enter the Brazilian poultry market is foiled for the third time.

Tyson spokesman Gary Mickelson said that Tyson remains interested in Brazil and is still looking out for expansion opportunities in the country.

In addition, Marfrig has also acquired DaGranja, a poultry and pork processor, for US$58 million.