Tyson Foods to partner with MFM Berhad

Tyson Foods, Inc. (NYSE: TSN) and Malayan Flour Mills Berhad (KLSE: MFLOUR) today announced their partnership. Tyson Foods will invest in the Malaysia-based company’s vertically integrated poultry business. This partnership will add more supply flexibility for both companies. However, the transaction is subject to approval by Malayan Flour Mills Berhad (MFM) shareholders, amongst others.

“Once completed, the poultry deal will optimise our existing Malaysia business”, said Chris Langholz, International President of Tyson Foods. “It will also expand MFM’s poultry business. This partnership 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”, he continued.

TYSON FOODS MALAYSIA currently operates one plant and one innovation centre. MFM’s vertically integrated poultry business includes feed mills, hatcheries, farms and processing facilities.

“We are pleased to partner with Tyson Foods to expand MFM’s long-established poultry business,” said Teh Wee Chye, managing director for MFM. “Tyson Foods is one of the world’s largest food production companies with a strong global manufacturing and distribution footprint. For instance, Malaysia is one of the key poultry markets in Southeast Asia, with a high per capita poultry consumption. Together with Tyson Foods, we look forward to increasing our halal poultry product offerings in the country. Especially in the further processed poultry segment, as well as exporting to demand markets with the help of Tyson Foods’ global network.”

Malaysia’s halal industry market value is expected to reach USD 147.4 billion (RM614.36 billion) by 2025. This statistic is according to the Halal Industry Development Corporation (HDC). The country exports about USD 9 billion (RM35.4 billion) in halal-certified products.

Tyson Foods Malaysia Comments

“Our global resources and robust innovation capabilities paired with MFM’s more than 30 years of expertise as a leading poultry player in the country, enable both companies to make halal-certified products more readily available and affordable,” said Tan Sun, president of Tyson Foods APAC.

Malaysia’s Halal food industry recognizes Tyson Foods’ Malaysia business as an industry leader. Similarly, MFM’s gold standard in Halal certified poultry products complements Tyson Foods’ Malaysia. In conclusion, this partnership offers strategic growth opportunities for both companies.

In FY20, Tyson Foods generated USD 6 billion in international sales, including U.S. export sales.

Rabobank Singapore acted as the global financial advisor to MFM.

To find out more about the partnership, visit the link here.