Brazil’s MBRF signs US$2.07B investment deal with Saudi Arabia’s HPDC for Middle East expansion
Joint venture to be listed in Riyadh by 2027 following asset transfer and regulatory approval.
MIDDLE EAST – Brazilian food company MBRF has entered into a US$2.07 billion investment agreement with Saudi Arabia’s Halal Products Development Company (HPDC) to strengthen their operations in the Middle East, with plans to list the venture on the Riyadh Stock Exchange in 2027.
Following the announcement, MBRF’s shares increased by 9.25%, trading at 16.42 reais (about US$2.90) in late morning trading on Monday.
According to a securities filing, an MBRF subsidiary will contribute assets worth US$2.07 billion to the joint venture, including distribution and production facilities across Saudi Arabia, Qatar, the United Arab Emirates, Kuwait, and Oman.
Structure of the partnership
MBRF, which recently resulted from the merger between meat processors BRF and Marfrig, said HPDC will initially hold a 10% stake in BRF Arabia, the investment vehicle for the partnership.
HPDC, fully owned by Saudi Arabia’s Public Investment Fund (PIF), intends to raise its stake to 30% and has the option to increase it to 40% if specific conditions outlined in the agreement are met.
Genial Investimentos analyst Igor Guedes said the deal benefits MBRF through an immediate capital inflow and a potential future injection once the planned 2027 initial public offering (IPO) takes place, which could help lower the company’s debt.
Bank of America (BoFA) also described the transaction as supportive of MBRF’s regional growth, although its analysts maintained a neutral rating on the stock.
BoFA noted that MBRF continues to face challenges including weak U.S. beef margins, plateauing profitability in its poultry and pork segments, and high leverage.
Listing plans and timeline
At a press conference, MBRF’s controlling shareholder Marcos Molina said the Riyadh stock exchange offers some of the highest valuation multiples in the world, making it an appealing choice for the joint venture’s future listing.
He added that the move follows a similar approach taken by MBRF’s main rival, JBS, which listed shares on the New York Stock Exchange earlier this year to expand its investor reach and cut capital costs.
MBRF expects to secure all regulatory approvals for the transaction by the first quarter of 2026.
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