BRF in ‘final stage’ talks with two firms
In an announcement made by the company on 3 December, BRF fired the starter gun on takeover talks with Campo Austral and Universal Meats, from Argentina and the UK respectively.
The announcement comes hot on the heels on its acquisition of GFS – one of Thailand’s largest cooked poultry exporters.
Negotiations had been ongoing for some time with BRF operating on multiple fronts: last week they were negotiating with three companies, across three separate continents: Asia, Europe and South America, demonstrating their ambition and commitment to their long-term global expansion strategy.
'A milestone'
“This is a milestone in the company’s history and a clear message that our expansion plan is serious and consistent,” CEO Pedro Faria said in a company statement.
BRF’s acquisition of the Thai poultry firm will increase revenues in 2016 by as much as $600m, according to Faria.
Hitherto, BRF had no operational presence in Thailand. The move looks set to help the company “diversify its global footprint” while ensuring it develops strong strategic partnerships with other Asian markets.
'Important players'
Negotiations in Argentina seem slightly less straightforward. Communication has been conducted via Eclipse Holding Cooperatief UA - a Dutch company that controls Campo Austral in Argentina.
BRF did confirm an offer of $85m had been tabled and, if accepted, the takeover would make BRF the second-largest pork business in Argentina.
Faria added: “We will become important players in the cooked ham, salami, bologna and pork cut categories.”
Concrete details on the takeover of Universal Meats in the UK remain sketchy, with neither company willing to disclose too much. But it is believed an understanding has been reached for BRF to acquire the British meat distributor for $51.2m.
“We can’t say it’s complete, but we are 100% sure it’s going to go through,” said a company spokesman.
