Food processor Brasil Foods (BRFS3.SA)(BRFS.N) will likely suspend the use of a flagship brand temporarily and sell 20 percent of production to competitors, to avert a government break-up of the company, O Estado de S. Paulo newspaper reported on Tuesday. Brazil's antitrust regulatory agency Cade was reviewing whether the creation of Brasil Foods in 2009, through a takeover of Sadia by rival Perdigao, resulted in a company with too much pricing power in the food processing market. Members of Cade and Brasil Foods executives are working on a draft version of the accord, which should be ready before the agency resumes its analysis of the case on July 13, Estado said, citing unidentified sources. The sources told Estado that both parties had agreed to a suspension of the use of the Perdigao brand for an unspecified period of time, and the disposal of a series of assets including second-tier brands, factories and distribution centers.
BRF - Brasil Foods S.A. (BRF) is a food company, which focuses on the production and sale of poultry, pork, beef cuts, milk, dairy products and processed food products under several brands. Shares of BRFS remained unchanged at $16.27. In the past year, the shares have traded as low as $12.75 and as high as $20.79. On average, 2426880 shares of BRFS exchange hands on a given day and today's volume is recorded at 0.
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