Marfrig and BRF finalized the investment agreement with Saudi Arabia’s HPDC, a subsidiary of the sovereign wealth fund Public Investment Fund (PIF), to develop the halal business in the Middle East.
Following the closing of the transaction, subsidiary BRF GmbH took control of 90% of Sadia Halal, while HPDC retained the remaining 10%. The new platform includes distribution operations in Saudi Arabia, Qatar, the United Arab Emirates, Kuwait and Oman, as well as industrial plants in Saudi Arabia and the UAE. It also incorporates the direct export business to the MENA region. Assets in Turkey were excluded from the transaction.
The agreement provides contributions from HPDC of US$ 24.3 million in this first stage and an additional US$ 73.1 million by the end of 2026. In addition, BRF signed a renewable 10-year supply agreement to provide products to Sadia Halal from Brazil, along with a brand licensing agreement allowing the use of the Sadia brand, among others, in the Middle East.
The companies announced that preparations for an initial public offering (IPO) of Sadia Halal on the Riyadh stock exchange will begin immediately, subject to market and regulatory conditions.
According to the companies, Sadia Halal starts operations with an enterprise value of US$ 2.07 billion and positions itself as one of the world’s largest halal protein platforms, with access to more than 350 million consumers across 14 Islamic countries.
The agreement also foresees HPDC increasing its stake to 20% before June 2027 or before the IPO, with the possibility of reaching up to 40% prior to the public offering.
