Brazil's Amaggi buys stake in food ingredients company

BRF SA

15/02/2024 13:03

By Roberto Samora
       SAO PAULO, Feb 15 (Reuters) - Amaggi, a Brazilian grain
processor and exporter, has entered an agreement to acquire a
stake in food ingredients company Milhao Ingredients, according
to a statement sent to Reuters on Thursday.
    The privately owned buyer did not disclose the size of the
stake or the value of the deal.
    Amaggi, which operates in the production, processing,
marketing and transportation of agricultural products, said
competing in the food ingredients segment is an opportunity to
further diversify sources of income.
    Milhao is based in Goias state and serves clients such as
Nestle  NESN.S , PepsiCo  PEP.O , BRF SA  BRFS3.SA , Brazilian
wheat miller M. Dias Branco, and Heineken  HEININ.UL , among
others.
    "The partnership, through an investment with Milhao
Ingredients, is aligned with Amaggi's strategy of growth and
diversification of our business," Amaggi's CEO, Judiney
Carvalho, said in the statement.
    With the move, Amaggi enters a market where global grain
merchants such as ADM  ADM.N  and Cargill have been operating
for some time in a bid to obtain margins higher than those
recorded in the bulk commodities segment.
    The deal must yet be approved by antitrust authority Cade,
Amaggi said.
    Milhao, which uses non-transgenic corn as a raw material,
has a production capacity of 280,000 metric tons of food
ingredients per year. 
    In March, the company plans to open a non-GMO corn oil
facility, Amaggi said.

 (Reporting by Roberto Samora
Writing by Ana Mano; editing by David Evans)
 ((ana.mano@thomsonreuters.com; Tel: +55-11-5644-7704; Mob:
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