“The merger never ends.” The phrase mentioned recently by the company’s president Jose Antonio do Prado Fay, shows well the mood of the executive running the largest poultry, pork and frozen food company in Brazil.Living a nightmare since May 19, 2009, when the Sadia/Perdigao merger was announced, BRF only received the CADE (the equivalent of the Federal Trade Commission to ensure market competitiveness) stamp approval in July this year…. more than two years later!
Acording to Brasil Economico, the conditional approval forced the company to sell a number of assets,such as factories and brands (like Rezende). The obvious acquirer (and already highly leveraged), Marfrig announced recently the signing of an agreement to purchase these assets from BRF.
“Brazil should remain strong next year, while international markets are more concerning due to the European crisis. Our strategy is very focused on the emerging world. We have to occupy an important leadership position in countries like Argentina, which will eventually be an important global player in poultry trading, ” he said.
In addition to the US$120 million factory that BRF will build in Abu Dhabi, the company’s main focus is in the more distant Chinese market.BRF has had distribution centers in China for the last 13 years, but the Asian giant wants to partner up through a joint-venture with a local public company called DCH (Dah Chong Hong Limited). Depending on its performance, BRF may soon build a plan in China as well.
“China is a huge country, with a high consumption rate but also with a lot of challenges when it comes to laws, rules and business demands,” said Wilson Mello, BRF’s vice president of corporate affairs. In addition to the export of poultry, BRF also received the Chinese government approval to start exporting pork.