Brazil's BRF and Saudi Arabia's Public Investment Fund (PIF), have fulfilled all conditions as a prelude to the establishment of a joint venture (JV) agreement.
BRF GmbH and Halal Products Development Company (HPDC), a wholly owned subsidiary of the kingdom's sovereign wealth fund "will begin implementing the formalities to incorporate a legal entity in Saudi Arabia," BRF said, in an announcement on August 1.
The agreement calls for BRF GmbH owning 70% of the entity, with HPDC holding the remaining 30%. BRF added that it will keep its shareholders and the market in general informed about any relevant matter related to the announcement.
The JV was initially announced in October 2022, with the aim of establishing operations for the entire poultry production chain in the kingdom.
The Brazilian food processing company has been a subject of Saudi interest off late. Last month, SALIC, another PIF subsidiary, acquired 180 million equity shares of BRF, representing 10.7% of the company’s outstanding shares.
The Brazilian food company clocked in $2.73 billion in net revenues for the first quarter of the year, while its adjusted earnings before interest, depreciation, tax and amortization, amounted to $126 million.