Brazilian food producer MBRF recently signed an investment deal with Saudi Arabia’s Halal Products Development Company (HPDC) to increase its stake in a joint venture in the Middle East, which it will later list in Riyadh. A subsidiary of the Brazilian company will inject assets valued at USD 2.07 billion, a securities filing added.
HPDC is a subsidiary of Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF). MBRF, which was created through the merger of meat and poultry processor BRF and beef producer Marfrig, said that under the deal, HPDC will hold 10% of BRF Arabia, the investment vehicle for the joint venture. HPDC plans to raise its stake to 30% in the joint venture and has the right to increase it to 40% if certain conditions are met, the filing said.
In a press conference, the controlling shareholder of MBRF, Marcos Molina, explained plans to list the joint venture’s shares in Saudi Arabia, noting that the multiples of companies traded at the Riyadh stock exchange are some of the highest in the world.
Rival JBS listed shares on the New York Stock Exchange in early 2025 to attract more investors and lower its cost of capital. The company plans to have all regulatory approvals for the transaction in the first quarter of 2026. Sadia Halal, which will be the new name of the business following the close of the transaction, is expected to go for the IPO (Initial Public Offering) route in 2027, MBRF said.
The rebranding and IPO plan reflect a strategic effort to strengthen the company’s identity in the growing halal food sector. Analysts expect the move to improve investor confidence and unlock new growth opportunities in both domestic and international markets. Additionally, the transaction could pave the way for further mergers and acquisitions, enhancing Sadia Halal’s competitive position globally.