|Bid||32.80 x 0|
|Ask||33.58 x 0|
|Day's Range||32.56 - 33.59|
|52 Week Range||19.13 - 35.23|
|Beta (3Y Monthly)||0.94|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 9, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||25.55|
(Bloomberg) -- Brazilian chicken giant BRF SA remains open to deals that would increase its product and geographical reach after ending merger talks with beef heavyweight Marfrig Global Foods SA.The Sao Paulo-based company could engage in negotiations for non-cash mergers, strategic partnerships or long-term supply agreements to give it further access to beef supplies as a way to boost its food-service and processed-food businesses, according to Chief Executive Officer Lorival Luz.BRF, which also produces pork, would “ideally” have a third protein source as the company seeks to develop new products, Luz said in an interview in Sao Paulo. The company isn’t pursuing any beef transaction at the moment, he said.“Bovines are on the map -- the question is how, when,” he said.BRF has emerged as a likely winner from the spread of a deadly pig disease that is slashing hog supplies in China, the world’s largest pork consumer, as U.S. rivals have faced limited access to the Asian nation’s market. Shares have jumped 55% in dollar terms this year.Brazil Emerges as Swine-Fever Winner as Trade War Shackles U.S.Marfrig TalksBRF surprised investors in late May by saying it was weighing a merger with Marfrig, the world’s largest beef producer after JBS SA. Its shares initially sank on the news amid concerns about the ownership structure and how much value would be extracted given Marfrig’s track record of poor results and thin industry margins.Talks with Marfrig, which would have given BRF a desired presence in the U.S., ended even before studies on potential synergy gains could be completed as the meat producers didn’t agree on how the new company would be managed, Luz said. While chicken and processed-food producer BRF has a dispersed share ownership, Marfrig is controlled by its founder Marcos Molina.Hog Disease in China Won’t Spur Big Meat-Market Shift, BRF SaysBRF is now focused on returning to profit in 2019 after posting losses for the past three years and on reducing net debt to below three times earnings before interest, taxes, depreciation and amortization by next year, Luz said. Also, the company is in advanced talks with more than one player on a partnership to produce chicken in Saudi Arabia, where it already has a dominant position.“It’s a priority for BRF. I would like to see talks concluded by year-end,” Luz said.(Adds impact from swine fever in fifth paragraph.)To contact the reporters on this story: Gerson Freitas Jr. in São Paulo at email@example.com;Tatiana Freitas in São Paulo at firstname.lastname@example.orgTo contact the editors responsible for this story: James Attwood at email@example.com, Millie Munshi, Patrick McKiernanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Brazilian meatpackers BRF SA and Marfrig Global Foods SA said on Thursday that they had mutually agreed to call off negotiations for a possible merger that were going on for a month. The two companies said in securities filings they had ended the talks because they could not agree on the governance structure of the potentially merged company. Two sources with knowledge of the matter said key shareholders, such as founding families of BRF SA, Fontana and Furlan, and pension funds such as Previ and Petros, were against the proposed merger, mainly due to the expected prominence of Marcos Molina, founder and Marfrig Chairman, in the management of the future company.
(Bloomberg) -- Rising doubt that its proposed tie-up with Marfrig Global Foods SA will actually happen is helping turn chicken producer BRF SA into the world’s best-performing major meat stock.When the two Brazilian companies surprised investors in late May by saying they were exploring a merger, BRF shares sank. But the initial selloff wasn’t driven by typical deal logic that a buyer’s stock price falls and a target’s rises. Rather, investors were concerned about the ownership structure of the new company and how much value would be extracted given beef producer Marfrig’s poor results and thin industry margins.Then BRF shares took off. They are now up 17% since talks were made public. That’s the best performance among major meat processing stocks tracked by Bloomberg. In the same span, Marfrig is down about 3%.Behind the turnaround is the notion that BRF will face an uphill battle convincing its shareholders that the scale gains of buying Marfrig are worthwhile. As perceived risks of the deal failing grows, investors have focused on how much BRF stands to benefit from booming protein demand due to an outbreak of African swine fever in China.“The market has become skeptical,” Diana Stuhlberger, an analyst at Eleven Financial Research, who has the equivalent of a hold recommendation on BRF shares, said by telephone. “I haven’t incorporated it into BRF’s estimates.”BRF’s rally means Sao Paulo-based Marfrig is trading near the cheapest relative to its would-be acquirer since early 2018. The outperformance also means BRF would have more than 87% of the combined value of the two companies, up from the 85% share outlined in the proposed tie-up.The all-stock transaction would create the fourth-largest meat company in the world by sales, increasing BRF’s geographic and product diversification and allowing the firm to reduce leverage, a key investor concern.Studies about the benefits of a transaction with Marfrig are still being conducted, with a final decision on the deal subject to further assessments by the two boards, BRF said in response to questions.“The important thing for us is to have clarity that the strategic goal of strengthening both companies will be met with the proposed merger,” the company said.Marfrig declined to comment.(Updates shares)To contact the reporters on this story: Gerson Freitas Jr. in São Paulo at firstname.lastname@example.org;Vinícius Andrade in São Paulo at email@example.comTo contact the editors responsible for this story: James Attwood at firstname.lastname@example.org, Steven FrankFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Moody´s Latin America Agente de Calificación de Riesgo S.A., (Moody´s) has upgraded Quickfood S.A.'s guaranteed senior unsecured notes' ratings to B1/Aa3.ar from B2/A2.ar following the upgrade of the guarantor's ratings, Marfrig Global Foods S.A. (Marfrig, B1 stable), to B1 with stable outlook on July 4, 2019. At the same time, Moody's has affirmed Quickfood's corporate family rating (CFR) at B3/Baa2.ar.
Amid an overall bull market, many stocks that smart money investors were collectively bullish on surged during the first quarter. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 40% and 25% respectively. Our research shows that most of the stocks that smart money likes historically generate strong risk-adjusted […]
Beef-crazy Brazil, with its all-you-can-eat steak houses, world-leading meatpackers and more cattle than people, is not the first place you might look for plant-based alternatives to meat. Such "plant-based meats" generally use a processed mix of protein from soybeans or peas, for example, blended with mushrooms or vegetables such as beets to approach a texture, appearance and taste similar to animal products. Brazil's cattle population has grown to around 215 million, while the country has about 210 million residents, according to official statistics agency IBGE.
Brazilian chicken exports to China grew by 49% in May compared to the same period last year as the Asian nation imported more meat to deal with an outbreak of African swine fever (ASF) that has impacted domestic production. Brazil, the world's largest chicken exporter, shipped 381,100 tonnes last month to overseas customers, a 14.4% increase, according to a statement from meat industry group ABPA on Friday. China represented almost 15% of shipments, the ABPA data showed, and was Brazil's main chicken export destination last month.
Announcement: Moody's says potential merger between Marfrig and BRF is credit positive. Global Credit Research- 04 Jun 2019. New York, June 04, 2019-- Moody's Investors Service comments that the potential ...
Management at Brazilian food processor BRF SA has met with resistance from a minority of its board to talks on a potential merger with Marfrig SA that would create one of the world's largest meat producers, three people with knowledge of the matter said. The sources, who asked for anonymity to discuss confidential deliberations, said that BRF's 10 directors did not unanimously approve the exclusive talks with Marfrig. Dissenters questioned how a tie-up would fit with the strategy of Chairman and Chief Executive Pedro Parente to cut debt, sell assets and restructure operations after a string of losses.
Brazilian food processors BRF SA and Marfrig Global Foods SA on Thursday announced exclusive talks for a potential tie-up that would create one of the world's largest meat producers, according to securities filings. A deal could combine BRF's poultry business, which leads the world in chicken exports, and Marfrig's beef business, which is second to JBS SA globally. Two other sources close to the companies said their aim is to create a complete protein portfolio to compete with global giants such as Tyson Foods Inc and JBS.
Brazilian food processors BRF SA and Marfrig Global Foods SA on Thursday opened exclusive talks for a potential tie-up that would create one of the world's largest meat producers, according to securities filings. A deal could combine BRF's poultry business, which leads the world in chicken exports, and Marfrig's beef business, which is second to JBS SA globally.
The boards of Brazilian food processors BRF SA and Marfrig Global Foods SA have agreed to open discussion on a potential merger of the two companies that would create one of the world's largest meat producers, ...
Brazil's Ministry of Agriculture officially banned three laboratories from conducting food inspections over their involvement in a food safety testing scandal that ensnared meatpacker BRF SA, according to decisions published in the official government gazette on Wednesday. The three laboratories run by Merieux NutriSciences Corp in Brazil, which performed testing on BRF products, are no longer authorized to process samples under the ministry's official control program, according to the decisions. BRF and the Agriculture Ministry did not immediately reply to requests for comment.
Executives at Brazilian food company BRF SA have recently traveled to Saudi Arabia to discuss ways in which to expand its presence in that key market, according to management remarks to journalists on ...
U.S. markets however, opened lower after President Donald Trump said he was in "absolutely no rush" to finalize a trade agreement with China. MSCI's index of Latin American stocks slid about 0.5% on the trade-related jitters and weakness in Brazil's Bovespa which came on the back of some disappointing earnings. BRF, the world's largest chicken exporter, slid 2.5% after the company said it lost money for the third consecutive quarter grappling with higher feed costs and trade restrictions in key markets such as Saudi Arabia.
Brazilian food processor BRF SA said it requested Chinese authorities certify an additional four plants to export meat products, as a deadly hog virus sweeping across the Asian country boosts potential ...
Brazilian food processor BRF SA, the world's largest chicken exporter, said it lost money for the third consecutive quarter as the company grapples with higher feed costs and trade restrictions in key ...
SÃO PAULO, April 29, 2019 /PRNewswire/ -- BRF S.A. ("BRF" or "Company") (B3: BRFS3; NYSE: BRFS) announces to its shareholders and the general market that it filed, on April 29, 2019 ...
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Exports of Brazilian beef grew 2.6 percent in the first quarter of 2019 to 405,669 million tonnes, the trade group Abiec said on Monday. Despite the growth, revenue from beef sold decreased 5.6 percent ...
The board of Brazilian food company BRF SA has elected Lorival Luz as its new global chief executive replacing Pedro Parente, according to a securities filing on Thursday. The decision is effective from ...