Brazilian food processor BRF CEO resigns
SAO PAULO, Aug 30 (Reuters) – Brazilian food processor BRF SA said on Tuesday that chief executive Lorival Luz has resigned and will be replaced by Miguel Gularte, a top executive at beef-packer Marfrig Global Foods SA.
Shares in the poultry and pork processor were around 6% higher in early trading in Sao Paulo, but closed 1.10% lower at 16.19 reais ($3.17) as BRF investors digested the news.
“To some extent, Miguel Gularte can be described as a beef guy,” BTG Pactual analysts said in a note to clients.
Whether he can reposition BRF to face stiff competition in Brazil remains an open question. “These are very different industries and require a different set of skills,” BTG said comparing beef operations to pork and poultry processors.
BRF said the move does not reflect an intention to merge the two companies, even though the market has speculated that for some time.
Marfrig, which owns 33.27% of BRF, has said previously it was only interested in a passive stake in BRF.
Whether he can reposition BRF to face stiff competition in Brazil remains an open question. “These are very different industries and require a different set of skills,” BTG said comparing beef operations to pork and poultry processors.
Reuters
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