São Paulo – Brazil’s food company BRF has informed that it is in talks for a “strategic collaboration” with the Americana Group, a food manufacturer and restaurant franchise manager active in the Middle East and Asia. The Brazilian company sent a communiqué to the Brazilian Securities and Exchange Commission last Monday (23rd) informing that it is negotiating with the Arab company.
“The (BRF) Company hereby communicates the market that in line with its international expansion strategy, it has recently entered into a non-binding agreement with Americana, whereby the companies have agreed to cooperate in carrying out a tandem strategic analysis aiming to establish a strategic cooperation in the Middle East region,” reads the document signed by the BRF Finance and Investor Relations deputy vice president Augusto Ribeiro Junior.
The communiqué issued by BRF does not disclose any details. Americana manages stores from 12 international restaurant and fast food chains throughout the Middle East. The food production division manufactures 12 different brands of frozen items, savoury items, cheeses, water, sweets and pastries, olives, and animal protein. Americana has 55,000 employees and 17 plants. In 2012 the company posted US$ 2.9 billion in revenues. It is active in Kuwait, Egypt, Morocco, Oman, the United Arab Emirates, Qatar, Jordan, Syria, Lebanon and Kazakhstan.
Middle Eastern countries rank among BRF’s main clients, especially Saudi Arabia and the Emirates. The company is building a plant in Abu Dhabi, the Emirati capital, with operations due to start in June 2014. Upon taking charge of BRF’s board of managers, this year, the businessman Abilio Diniz said one of his goals while heading the company would be to increase export revenues. In November 2012, BRF bought a 49% stake in Federal Foods, an Emirati food distribution company, for US$ 36 million.
In the communiqué to the market, BRF has stated that its dealings with the Kuwaiti company are at an early stage. “Our talks with Americana are at a preliminary phase, and may or may not lead to a collaboration involving BRF and Americana. As of this date, the purview of our potential collaboration remains indefinite as well,” according to the communiqué.
Translated by Gabriel Pomerancblum
