Brazil’s competition regulator approves merger between Marfrig and BRF
Deal clears key regulatory hurdle as shareholders prepare for vote; new company MBRF could rank among top global food groups.
BRAZIL – Brazil’s antitrust authority has approved the planned merger between Marfrig Global Foods and BRF, two of the country’s largest meat companies.
The Administrative Council for Economic Defense (CADE) issued its decision on June 3, stating that the transaction does not present competition risks.
The green light from CADE paves the way for the formation of MBRF Global Foods Co. S.A., a combined entity that would generate net revenue of approximately US$27.8 billion (R$152 billion) over the last 12 months.
According to a joint statement from the two companies, around 38% of the merged business’s portfolio would consist of value-added processed foods under well-known Brazilian brands such as Sadia, Perdigão, Qualy, and Bassi.
The companies initially revealed plans to combine operations in May and said the move was subject to regulatory clearance and shareholder approval.
CADE’s decision will take effect within 15 days, provided there are no objections from its Tribunal or formal appeals against the ruling.
Next, both companies are expected to hold shareholder meetings on June 18 to vote on the proposed integration.
If finalized, the deal would see BRF become a fully owned subsidiary of Marfrig, and BRF shareholders—excluding Marfrig—would receive 0.8521 Marfrig shares for every BRF share they currently hold.
The companies project annual cost savings of around US$85.6 million (R$485 million) following the merger, according to their regulatory filings.
Marfrig’s growing stake in BRF leads to full takeover
Marfrig’s path toward full ownership of BRF began in 2021 when it acquired a 24.23% share in the company.
By September 2023, Marfrig had raised its stake to 40.05%, gradually gaining influence over BRF’s operations and strategic direction.
As of 2024, Marfrig holds the majority of BRF shares, positioning itself to consolidate control through the current merger proposal.
If approved by shareholders, the deal would finalize a years-long shift in ownership and potentially reshape the structure of Brazil’s food production industry.
MBRF would emerge as a major force in global protein production, combining Marfrig’s beef operations with BRF’s processed foods segment under one corporate structure.
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