Brazilian antitrust regulators voted on Wednesday in favor of an agreement saving the merger that created processed foods company Brasil Foods, which pledged to sell plants, brands and other assets. Antitrust watchdog Cade endorsed a plan by which Brasil Foods (BRFS3.SA) (BRFS.N) would sell 80 percent of production capacity for its flagship brand Perdigao and halt the sale of some of its products for between three and five years. The agreement averts a forced breakup of Brasil Foods, the Sao Paulo-based processed foods giant spawned from the 2009 takeover of debt-ridden Sadia by smaller rival Perdigao. Cade had threatened to derail the merger, citing Brasil Foods' dominance in several market segments. The company's shares posted their biggest gain in more than two years. The outcome is a major victory for Brasil Foods, whose brands dominate supermarket shelves all over Brazil. The cost of an outright breakup of the company would have been much greater than unloading some assets and brands.
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 traded higher by 9.92% or $1.67/share to $18.50. In the past year, the shares have traded as low as $12.75 and as high as $20.79. On average, 2432130 shares of BRFS exchange hands on a given day and today's volume is recorded at 3488477.
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