US company Tyson Foods, Inc. has announced that it will acquire a 49% stake in the poultry segment of Malaysian food manufacturing company, Malayan Flour Mills Bhd (MFM).
The transaction, worth MYR 420 million (USD 104 million), is subject to approval by the shareholders of MFM, amongst others.
Tyson Food International President Chris Langholz said that once the acquisition is completed, the deal will optimize the company’s existing business in Malaysia, expand MFM’s poultry business, and will add more supply flexibility for both companies in serving halal-certified poultry to consumers and customers in the country and across priority export markets.
Malaysia’s halal industry market value is expected to reach USD 147.4 billion USD (MYR 614.36 billion) by 2025, according to the Halal Industry Development Corporation (HDC). The country exports about USD 9 billion USD (MYR 35.4 billion) in halal-certified products.
Tyson Foods Malaysia currently operates one plant and one innovation center, while MFM’s vertically integrated poultry business includes feed mills, hatcheries, farms and processing facilities.
In FY 2020, Tyson Foods generated USD 6 billion in international sales, while MFM’s group revenues in FY 2019 reached MYR 2.7 billion (USD 668 million).
(Sources: The Star; Tyson Foods, Inc.)