BRF, Marfrig shareholders vote in favor of merger

Shareholders for BRF and Marfrig Global Foods at respective extraordinary general meetings voted to approve the proposed merger between the two companies.

The companies announced the outcome of the votes in a joint securities filing. The vote was initially scheduled to be held on June 18, but was twice rescheduled. The merger remains subject to regulatory approval.

Under the proposed merger deal, if approved, the new entity will be known as MBRF Global Foods Company SA. The companies initially announced their intent to merge on May 15.

The companies earlier stated that the business combination aims to strengthen the global presence of the two companies’ brands, unlock strategic, operational, and tax synergies, and generate value for shareholders, customers, consumers, and other stakeholders — leveraging competitive advantages across different markets.

About BRF and Marfrig Global Foods

The two companies have had a strong affiliation since Marfrig initially purchased 24.23% of BRF’s shares in 2021. Marfrig has continued to increase its ownership of BRF since that time, becoming the majority shareholder in December 2021. The two companies also share the same chairman, Marcos Antonio Molina dos Santos, who had previously referred to BRF and Marfrig as “sister companies” and hinted that a merger would eventually happen.

BRF is primarily known as a poultry and pork producer, ranking as the world’s third largest poultry producer, having slaughtered 1.67 billion broilers during the past year, according to the WATTPoultry.com Top Poultry Companies Database. In addition to its South American operations, BRF, formerly known as Brasil Foods, has a strong presence in the Middle East.

Marfrig is primarily known as a beef producer, but the joint filing also revealed its slaughter activities also include cattle, horses, pigs, goats, sheep, poultry and buffalo. It is also the former parent company of Keystone Foods, which was acquired by Tyson Foods in 2018.

Both companies rank among the world’s largest feed companies, as BRF is the world’s 14^th largest feed producer and Marfrig is the world’s 132^nd largest feed producer, having respectively produced 9.6 million and 1.1 million metric tons during the past year, according to information from the Feed Strategy Top Feed Companies Database.

BRF is also active in the pet food sector. According to Petfood Industry’s Top Pet Food Companies, BRF Pet SA became a major player in the Brazilian pet food market in 2021 with the acquisitions of established manufacturers Hecosul and Mogiana. 

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