MBRF and Saudi HPDC Form Sadia Halal in Expanded Gulf Joint Venture

Overview

• Sadia Halal combines MBRF’s factories and distribution hubs in Saudi Arabia and the UAE with distribution companies in Qatar, Kuwait and Oman, plus direct exports to regional customers.
• A 10-year renewable agreement will supply chicken and beef from MBRF’s Brazilian plants to the new venture using a total-cost transfer-pricing methodology.
• HPDC will start with a 10% stake, with a planned increase to 30% and the right to reach up to 40% through a mix of primary and secondary capital injections.
• Company disclosures cite assets valued at US$2.07 billion with US$2.1 billion in 12-month net revenue and US$230 million in EBITDA, while a separate report described a US$500 million contract, highlighting a public discrepancy.
• Turkish assets and MBRF’s Brazilian units are excluded from the deal, which remains subject to regulatory approvals, as MBRF signals the move as a first step toward a potential listing in Riyadh.