November 10, 2011

Brasil Foods to sell assets to Marfrig

Brasil Foods is set to sell a portion of its assets to Marfrig Alimentos, according to Bloomberg.

Brasil Foods was created after a merger between two Brazilian food companies, Perdigao and Sadia. The deal was first signed in 2009 but the transaction finally received formal approval from Brazil's competition authorities in July.

The antitrust regulator, Cade, reportedly ordered Brasil Foods to sell some assets as a condition of the approval.

Marfrig said Monday (Nov 7) that it "doesn't comment on market rumours". Brasil Foods did not respond with comment when contacted by just-food.

Last month the Brazilian food group posted an increase in third-quarter profits. It added that growing demand for food products in Brazil and for festive products will "boost sales" and returns for the fourth quarter.