Breaking News on Dairy Processing & Markets

News > Manufacturers

Read more breaking news



Parmalat exhibits Brazilian ambitions with BRF dairy plants deal

Today's announcement is the second of its kind made by Parmalat in Brazil in the last month.
Today's announcement is the second of its kind made by Parmalat in Brazil in the last month.

Brasil Foods (BRF), Brazil's third largest dairy, has agreed to sell 11 dairy processing plants in the country to Parmalat for for R$1.8bn (US$795m, €610m).

Parmalat, owned by French dairy giant Lactalis, announced earlier today it had signed a Memorandum of Understanding with Sao Paulo-based BRF for the purchase of 11 dairy manufacturing plants, corresponding assets, and trademarks.

BRF is Brazil's third largest dairy, behind Nestlé and Danone respectively. In 2013, it controlled a 10.3% share of the market. 

The BRF dairy plants set to be absorbed by Parmalat - Bom Conselho, Carambeí, Ravena, Concórdia, Teutônia, Itumbiara, Terenos, Ijuí , Tres de Maio I, Tres de Maio II, and Santa Rosa - generated R$2.6bn (US$1.2bn, €890m) of revenue in 2013.

Parmalat will finance the deal, if granted regulatory approval, entirely with "internal resources."

The Memorandum of Understanding with Parmalat was approved by the BRF board, which announced in February 2014 that it was “considering strategic alternatives for its dairy division including the formation of partnerships or the partial sales of such assets to third parties.” reported in June 2014 that a total of 14 firms were battling to get their hands on BRF's dairy assets.

Brazilian ambitions

Parmalat has seemingly set its sights on conquering the Brazilian dairy sector, with today's announcement the second of its kind in less than a month.

The Italian dairy is currently awaiting regulatory approval to purchase the UHT milk and cheese operations of Brazilian dairy Lácteos do Brasil (LBR), which was granted bankruptcy protection in February 2013, for R$250m (US$110m, €83m).

Under the terms of the offer, announced last month, Parmalat stands to acquire manufacturing capabilities that in 2013 churned out R$580m (US$255m, €193m) worth of product.

It will also absorb offices, staff, and some LBR brands through the proposed deal, which was approved by a meeting of LBR creditors on August 21.

Final approval of the LBR deal lies with the Brazilian Bankruptcy Court and the country's antitrust authority, the Brazilian Administrative Council for Economic Defense (CADE).

Post a comment

Comment title *
Your comment *
Your name *
Your email *

We will not publish your email on the site

I agree to Terms and Conditions

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Key Industry Events


Access all events listing

Our events, Events from partners...