Sector News

Brazil's Vigor offered to Danone, Lactalis, Lala, sources say

June 14, 2017
Food & Drink

Fábrica de Produtos Alimentícios Vigor SA is being offered to about half a dozen peers including Groupe Lactalis SA and Danone SA, as the Brazilian dairy producer’s owners raise cash to pay the world’s largest leniency fine and other debts, two people with knowledge of the process said on Tuesday.

The process to sell Vigor, which the investment banking units of Banco Santander Brasil SA and Banco Bradesco SA are advising, is in an initial stage, said the people, who declined to elaborate on the bidding process.

Apart from both French dairy producers, other companies invited to analyze Vigor’s business include Mexico’s Grupo Lala SAB de CV and Switzerland’s Emmi AG, the people said. So far, no price or a deadline for offers was decided, and there is no certainty a deal can be reached, the people said.

The media office of Danone declined to comment. J&F, Lala, Lactalis, Emmi and the banks did not immediately comment on the matter. The people asked for anonymity to speak freely about the process.

The plan comes two weeks after J&F Investimentos SA, the family holding company that controls Vigor, agreed to pay a record-setting 10.3 billion-real ($3.1 billion) leniency fine. J&F also needs cash to repay about 14 billion reais in loans coming due within the next 12 months, Reuters reported on June 7.

Members of J&F’s Batista family entered plea deals in which admitted bribing politicians to win advantages for their meatpacking, financial, pulp and apparel empire.

Foreign interest on Vigor, a relevant player in Brazil’s dairy market, has lingered for years. J&F and other companies discussed potential mergers and acquisitions for Vigor, but those talks always floundered because of price issues, sources told Reuters in recent months. ($1 = 3.3120 reais)

By Tatiana Bautzer

Source: Reuters

comments closed

Related News

October 17, 2021

France to ban plastic packaging for fruit and vegetables

Food & Drink

The government has published a list of around 30 fruits and vegetables that will be subject to the plastic packaging ban coming into effect on 1 January 2022. The list includes courgettes, aubergines and cucumbers, as well as apples, oranges and pears.

October 17, 2021

Kraft Heinz unveils plans for a circular PET ketchup bottle

Food & Drink

Kraft Heinz has detailed plans to release a circular PET tomato ketchup bottle by 2022 in its latest Environmental Social Governance report. The company has made progress towards its aim of using 100% recyclable, reusable or compostable packaging by 2025.

October 17, 2021

Beverages category fizzes with AI-generated soda, hemp-based gin, “green” cola & coca leaf infusions

Food & Drink

The drinks category is brimming with trend-driven launches including flavorful, energizing and better-for-you beverages. FoodIngredientsFirst speaks to disruptive fizzy beverage brands, whose offerings include a classic cola recipe reimagined with a clean label twist, as well as AI-generated flavor synergies.

Send this to a friend