São Paulo – Brazilian meatpacker MBRF and Halal Products Development Company (HPDC), of Saudi Arabia’s Public Investment Fund (PIF), announced the closing of the transaction that creates Sadia Halal, bringing together MBRF’s operations in the Middle East. The term refers to the conclusion and formalization of the deal between MBRF, which includes BRF and Marfrig, and HPDC, also known as Halal Devco.
According to an announcement made on Sunday (3) by MBRF, the new company is valued at USD 2.07 billion and includes MBRF’s factories and distribution centers in Saudi Arabia and the UAE; its distribution companies in Qatar, Kuwait, and Oman; as well as its direct export business of poultry, beef, and processed products to customers across the Middle East and North Africa (MENA).
With the deal concluded, MBRF holds a 90% stake in Sadia Halal, while HPDC holds 10%. According to the Brazilian company, Sadia Halal has already begun the steps and procedures required to list on Saudi Arabia’s main stock exchange, Tadawul. Under the agreement, HPDC confirmed its commitment to hold a stake of no less than 20% in Sadia Halal, with the option to increase it to up to 40% until the IPO, the term for a company’s initial public offering on the stock market.
Sadia Halal chairman and MBRF CEO in Saudi Arabia, Marquinhos Molina, said the moment marks a milestone in the company’s long-term commitment to Saudi Arabia and the region, also citing its contribution to the country’s economic transformation. Sadia Halal CEO and MBRF Halal Vice President Fabio Mariano said the company is getting increasingly closer to its consumers and is making a decisive contribution to the global food security agenda.
According to the statement, the announcement comes as global demand for halal food products is growing rapidly, with the market generating more than USD 2 trillion per year. The statement mentions the size of the Muslim population—1.9 billion people—growing on average twice as fast as the global population, ensuring steady and increasing demand.
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Translated by Guilherme Miranda
