MBRF expands partnership with HPDC, from the sovereign fund of Saudi Arabia, and creates Sadia Halal

MBRF and Halal Products Development Company (HPDC), a wholly-owned subsidiary of the Saudi Arabian sovereign wealth fund, announced on Monday, the 27th, the expansion of their joint venture, giving rise to Sadia Halal. The transaction is valued at US$ 2.07 billion and includes the MBRF factories and distribution centers located in Saudi Arabia and the United Arab Emirates, as well as its distribution companies in Qatar, Kuwait, and Oman, in addition to the direct export business of poultry, cattle, and processed products to customers in the region. The deal provides for the celebration of a supply agreement for MBRF poultry and beef products to Sadia Halal with a duration of 10 renewable years, from the factories located in Brazil. The pricing of the products will be based on the total cost methodology, following the applicable rules on transfer pricing. The assets were valued at US$ 2.07 billion, with net revenue of US$ 2.1 billion in the last 12 months until June, equivalent to ...