Bloomberg News

Brasil Foods, Marfrig to Swap Assets in Brazil, Argentina

December 09, 2011

(Updates with antitrust approval in third paragraph, shares in fourth paragraph.)

Dec. 8 (Bloomberg) -- BRF - Brasil Foods SA, the world’s largest poultry exporter, and Marfrig Alimentos SA said they signed an accord to swap assets in Argentina and Brazil.

As part of the agreement, Marfrig will take control of the assets that Brasil Foods was ordered to sell by Brazil’s antitrust regulator in July, the companies said today in regulatory filings. Marfrig will transfer its Argentine assets, commercial operations in Uruguay and Chile and a feedlot in Brazil’s Mato Grosso state, plus an additional payment of 200 million reais ($112 million), the companies said.

Brasil Foods was ordered by the regulator known as Cade to sell some assets as part of its $3.8 billion takeover of rival Sadia SA. The assets, which included 12 brands, 10 processing plants, eight distribution centers and four slaughterhouses, were worth about 1.4 billion reais in a sale, the average estimate from five analysts surveyed by Bloomberg News.

Marfrig rose 32 centavos, or 3.9 percent, to 8.55 reais at 11:15 a.m. in Sao Paulo trading, while Brasil Foods fell 0.3 percent to 37.73 reais.

--Editors: Jessica Brice, Carlos Caminada.

To contact the reporter on this story: Lucia Kassai in Sao Paulo at lkassai@bloomberg.net

To contact the editor responsible for this story: Jessica Brice at jbrice1@bloomberg.net


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