BRF shareholders back merger with Marfrig ahead of key vote

BRAZIL – A majority of BRF’s minority shareholders have given their approval for the proposed business combination with rival meatpacker Marfrig, signaling strong support ahead of an upcoming shareholder vote.

In a securities filing made public on Saturday, BRF confirmed that 71.4% of its minority investors voted in favor of the merger proposal, with the figure excluding those who chose not to vote.

According to the filing, 90% of shareholders holding BRF’s freely traded shares participated in the decision-making process.

The outcome indicates a clear path forward for the completion of the transaction before the extraordinary general meeting scheduled for August 5.

The agreement would bring together two major Brazilian food companies and result in the creation of a new global entity with operations spanning South America, North America, the Middle East, and China.

In May, Marfrig announced its intention to finalize the full acquisition of BRF and later take the combined business public in the United States under the name MBRF.

The proposed merger includes a share exchange arrangement under which each BRF shareholder would receive 0.8521 Marfrig shares for every BRF share they currently hold.

Once finalized, MBRF will also oversee the operations of National Beef, a US-based meat processor already owned by Marfrig.

The move is seen as part of a broader effort by Marfrig to consolidate its position in the global protein market and streamline its operations across different regions.

Both companies have emphasized that the combination would result in a more integrated supply chain and broader product portfolio, although no official figures have been provided on projected revenues or market share.

The merger also comes at a time when food companies are facing continued volatility in global commodity prices and increased competition in export markets.

BRF and Marfrig have previously collaborated through various strategic agreements, but this marks the first time they are seeking a full corporate integration.

If shareholders approve the deal at the August 5 meeting, the companies are expected to proceed with regulatory filings and begin the process of combining management and operations.

Although no timeline has been given for when MBRF might be listed in the US, the companies have hinted that the move could follow shortly after the merger is finalized.

The financial details of the transaction are based entirely on share conversion, with no additional cash payments involved.

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