June 8, 2012

 

BRF Brasil Foods and Marfrig begin asset exchange

 

 

Assets exchange have begun between Brazilian firms, BRF Brasil Foods and Marfrig Alimentos, complying with Brazil's antitrust authority, Cade, and as part of the merger agreement signed between the two companies in May 2012.

 

As a part of the asset swap agreement, which received clearance from Cade, BRF Brasil Foods has transferred the industrial units located in Duque de Caxias and Lajes, and the distribution centres located in Salvador, Campinas, Brasilia and Sao Jose dos Pinhais, to Marfrig.

 

Following the exchange, nearly 3,800 employees and the processes and production information systems related to the Brasil Foods assets will be integrated under Seara Foods, a subsidiary of Marfrig.

 

Meanwhile, Quickfood, an Argentinean food company owned by Marfrig, was transferred to BRF Brasil Foods on June 1, 2012.

 

The agreement requires Marfrig to transfer Quickfood's food processing operations, while retaining the slaughterhouses; however, in a meeting held on May 31, 2012, the shareholders of Quickfood voted for the complete transfer of Quickfood to BRF Brasil Foods.

 

The companies noted that they will inform the markets regarding each new stage of the transaction.

 

"The companies will inform the markets regarding each new stage of the transaction."

 

In 2011, Cade ordered BRF Brasil Foods, which was formed after a merger of Sadia with Perdigao in 2009, to divest some portion of its assets to ensure domestic competition after the takeover. BRF then signed an agreement in December 2011 to swap assets with beef producer Marfrig Alimentos.

 

In March 2012, BRF announced that it will absorb its subsidiary Sadia by the end of this year to streamline the process. After this, the subsidiary will cease to operate and its shares will be cancelled.

 

Brasil Foods manufactures frozen chickens, frozen pork cuts and beef cuts, processed food products, milk, soy meal and refined soy flour.

 

Marfrig Alimentos, based in Sao Paulo, Brazil, is involved in the production and distribution of fresh, processed and prepared beef, pork, mutton, poultry and food products.