Brazilian poultry meats exporter and dairy products processor BRF has agreed to form a joint venture (JV) with PT Indofood Suskes Makmur in Indonesia.
A binding memorandum of understanding to this effect was signed between both the companies.
BRF and Indofood will each hold a 50% stake in the JV, which will see around $200m in investments over the next three years.
The transaction is in line with BRF's strategy of globalizing, by accessing local markets, bolstering it brands, distributing and expanding its product portfolio around the globe, StreetInsider reported.
Under the JV, BRF will contribute its expertise in the protein-based food processing industry and Indofood will contribute with its market access in Indonesia, granting access to its extensive distribution network.
Indonesian company Indofood currently operates in all stages of food manufacturing, from production of raw materials and their processing, to consumer products.
Its business operations include consumer branded products, flour milling, agribusiness, distribution, cultivation and processed vegetables.
Image: Indofood offers noodles; dairy products, including sweetened condensed, liquid and powder milk, ice cream, yoghurt drinks, and butter; culinary products and syrups; snacks foods. Photo: courtesy of piyato / FreeDigitalPhotos.net.
