Tyson Foods acquires 49% stake in MFM’s poultry business

American meat company Tyson Foods has acquired a 49% stake in the poultry business of Malayan Flour Mills Berhad (MFM), a Malaysian food manufacturing company.

Financial details of the deal have not been disclosed.

MFM managing director Teh Wee Chye said: “We are pleased to partner with Tyson Foods to expand MFM’s long-established poultry business.

“Tyson Foods is one of the world’s largest food production companies with a strong global manufacturing and distribution footprint. Malaysia is one of the key poultry markets in South-East Asia, with a high per capita consumption of poultry.

“Together with Tyson Foods, we look forward to increasing our halal poultry product offerings in the country, especially in the further processed poultry segment, as well as exporting to demand markets with the help of Tyson Foods’ global network.”

According to the agreement, the American meat producer will invest in MFM’s vertically integrated poultry business.

MFM’s vertically integrated poultry business comprises feed mills, hatcheries, farms and processing facilities.

Completion of the deal is subject to approval of MFM’s shareholders, among others.

Tyson Foods International president Chris Langholz said: “Once completed, the poultry deal will optimise our existing Malaysia business and expand MFM’s poultry business.

“This partnership will add more supply flexibility for both companies in serving halal-certified poultry to consumers and customers in the country and across priority export markets.”

Tyson Foods Malaysia currently operates one plant and one innovation centre in the country.

Tyson Foods said that MFM’s Halal certified poultry products would complement its business in Malaysia, which is also considered to be a key player in the country’s Halal food industry.