European Commission Clears Acquisition of European and Thai Businesses of BRF by Tyson Foods
The European Commission has approved, under the EU Merger Regulation, the $340 million acquisition of the European and Thai Businesses of BRF of Brazil by Tyson Foods of the US. BRF’s European and Thai businesses are active throughout the poultry supply chain in Thailand, and import into and further process poultry meat in the European Economic Area.
Tyson Foods is a multinational food company, which primarily operates in beef, pork, chicken and prepared foods. The Commission concluded that the proposed acquisition would raise no competition concerns, because the overlaps were limited and, after the transaction, a number of players would remain in the market. The transaction was examined under the simplified merger review procedure.
The acquisition supports Tyson Foods’ valued-added and international growth strategies. The purchase includes four processing facilities in Thailand, one processing facility in the Netherlands and one processing facility in the UK.
The vertically integrated poultry operations in Thailand include a feed mill, hatchery, breeder farms and contract growing operations supplying live birds for the four poultry processing facilities. These four plants produce a wide range of fresh and frozen, value-added raw and fully cooked poultry products including highly specialized cuts for retail and foodservice customers throughout Asia and other export markets, including Europe.
The processing locations in the Netherlands and the UK are supported by in-house innovation capabilities for developing further processed chicken products for retail and foodservice customers throughout Europe. Products are sold under Grabits™, Hot ‘N’ Kickin’Chicken®, Speedy Pollo® and the Sadia® brands, in addition to key customer-owned brands.
