Brazilian food producer, Brasil Foods is to incorporate its wholly-owned subsidiary Sadia into the parent company by the end of the year.
The merger is part of the reorganisation which started with the business combination between the two companies in 2009. BRF Foods was created in 2009 from the merger of two traditional Brazilian meatpackers, Sadia and Perdigao.
The mergers main purpose is to accomplish the full integration of the BRF and Sadia businesses, seeking to maximise synergies and to rationalise activities, with consequent reductions in administrative and operating costs and increased productivity.
The decision to merge Sadia into BRF results in losses of approximately R$215 million in the fiscal year of 2011, while the final value of the impact of the Sadia merger into BRF will be determined on December 31, 2012.
Since 100% of the shares that represent the capital of Sadia are the property of BRF, there will be no change to BRF equity, or determination of exchange ratio which may be subject to comparison and/or the right to withdraw.
With the merger, Sadia will cease to operate and its shares will be duly cancelled.
Source: BRF – Brasil Foods S.A.