Miratorg to Acquire Sadia's Share in Russian JV

As was reliably informed, Russian Agribusiness Holdings Miratorg is planning to complete the deal on acquire of 60 per cent stake in Brazilian Sadia in Kaliningrad JV which specialises in ready-to-cook product manufacturing, reports Meat Russia citing RBC Daily.

This will make Miratorg the sole owner of the enterprise. The deal is being effected amid Sadia's merger with its main competitor, Brazilian poultry and pork producer, Perdigão. Their merger will lead to creation of the third largest company in meat production volume with turnover of $11 billion.

The Kaliningrad enterprise for ready-to-cook meat product manufacturing, Concordia, was created by Sadia and Agribusiness Holdings Miratorg in 2007. Investment value in the plant's first production stage totaled to $140 million, and according to Dow Jones data, Sadia's investments in that stage were $40.2 million.

RBC Daily had already written about Sadia's intention to sell its share in the JV, a decision resulting from the Brazilian company's global financial problems.

On 20 May, Viktor Linnik, Miratorg's president, told RBC Daily that the company would purchase Sadia's share in the company as soon as possible in order to become its sole owner.

It is not yet known how the Brazilian company will operate in the Russian market after the merger. Until now, Sadia and Perdigão have been working differently in Russia.

Experts estimate that Sadia had a 50 per cent share of the market for imported ready-to-cook pork products into Russia, and 40 per cent for chicken, concludes the Meat Russia report.

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