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The proposed merger between Marfrig Global Foods and BRF has gained regulatory approval from Brazil’s antitrust authority, the Administrative Council for Economic Defense (CADE).
According to a press release from BRF, this approval from CADE confirms that the merger between Marfrig and BRF does not pose competitive risks, and will become effective within 15 days of June 4, when the approval was granted, provided there are no objections from CADE’s tribunal and no appeals are filed.
The shareholders of both companies will meet on June 18.
Once the two companies are combined, the new entity will be known as MBRF Global Foods Company SA. The companies initially announced their intent to merge on May 15.
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 14th largest feed producer and Marfrig is the world’s 132nd 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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