Brazil's BRF Enters Turkish Poultry Market With Banvit Acquisition
The Brazilian food producer giant BRF is entering the Turkish poultry market with the acquisition of Banvit, the largest chicken meat provider in the Mediterranean country.
In another step in its international expansion, BRF has announced the transaction will be completed via a joint venture between the Brazilian company and Qatar Investment Authority (QIA), each holding 60% and 40% interest, respectively.
The project is in its first phase and involves the purchase of 79.5% share in Banvit, followed later by a tender offer for the remaining minority interest of 20.5%.
Banvit's assets will be incorporated into OneFoods, a BRF subsidiary led by Patricio Rohner and dedicated to the halal market.
"The acquisition of Banvit is the first step on the agenda to accelerate the growth of OneFoods, which holds market share in chicken products of approximately 45% in Saudi Arabia, United Arab Emirates, Kuwait, Qatar and Oman, countries where it operates with [its] own distribution and a broad product portfolio," said Rohner.
Banvit is a fully integrated producer, with five feed plants, four hatcheries and five production plants. The current company value is estimated at $470 million.
The Turkish poultry is also an active exporter of meat to countries including Azerbaijan, Macedonia, Kosovo, Northern Cyprus, Hong Kong, China, Georgia and Togo, Jordan, United Arab Emirates, Saudi Arabia, Benin.
Turkey is responsible for 10% of the global consumption of halal poultry. Although the local per-capita chicken consumption is considered low, the Turkish market offers potential for growth, said Rohner.
"In addition to the growth opportunities offered by the Turkish market, especially in processed products, we see important commercial and operational synergies to capture by integrating the operations of Banvit and OneFoods, which will further consolidate our strength and leadership in the halal animal protein market," explained Rohner.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Josiane Lang. To subscribe to ESM: The European Supermarket Magazine, click here.