BRAZIL, Sao Paulo. In yet another step in its international expansion, BRF arrives in Turkey, the world’s largest consumer of halal chicken, to acquire the operations of Banvit, the country’s largest poultry producer and market leader. The transaction will be via a joint venture between BRF and Qatar Investment Authority (QIA), the sovereign fund of Qatar, which will hold 60% and 40% interests, respectively.
Turkey, which has a population of 80 mill., accounts for 10% the global consumption of halal poultry. Even so, local per capita chicken consumption is low, at around 20 kg per year, and the penetration of processed food products is low, which means that the Turkish market offers excellent potential for growth. “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,” said Rohner.
The consummation of the transaction, which in its first phase involves the acquisition of a 79.5% interest in Banvit, followed later by a tender offer for the remaining minority interest of 20.5%, is subject to fulfillment of the conditions precedent in the final documents, including approval by the antitrust authority. Banvit’s firm value was estimated at US$470 mill.