BRF agrees to invest $20m in COFCO Meat Holdings

Brazilian meat company BRF has agreed to invest $20m in COFCO Meat Holdings, a Chinese pork company.

The São Paulo-based company announced that its shareholders had agreed to buy $20m worth of shares in China’s Cofco Meat in an initial public offering, which is expected in the Hong Kong Stock Exchange on 1 November.

One of the fast growing pork companies in China, COFCO Meat owns 47 hog farms, two slaughtering facilities and two processed meat plants strategically located across the country.

In addition to the investment, BRF, COFCO Meat and COFCO Corporation (COFCO) have entered into a non-binding term sheet to enhance strategic cooperation.

According to the new agreement, these companies will exchange best practices in managing and operating entire industry value chains, of best practices in compliance of Chinese laws and regulations, as well as investigation of collaboration opportunities.

BRF's investment is part of its plan to access local markets, and strengthen brands, distribution, and product portfolio worldwide.