Marfrig, BRF merger to move forward after CADE approval

BRAZIL – The planned merger between Marfrig Global Foods S.A. and BRF S.A. is advancing after Brazil’s Administrative Council for Economic Defense (CADE) gave its approval on September 5.

The authority confirmed its decision without imposing restrictions, supporting an earlier ruling issued by the General Superintendence (SG).

Marfrig first disclosed its intention to combine operations with BRF in May 2025, submitting the proposal to CADE shortly afterward for evaluation.

Under the agreement, Marfrig is set to purchase all BRF shares not already under its ownership, with BRF investors receiving shares in Marfrig in exchange.

The deal would lead to the establishment of a new company named MBRF Global Foods Company S.A., consolidating the two groups into a single structure.

CADE’s technical body determined that the operation does not present significant risks to competitive conditions in the country.

Marfrig’s business centers on producing beef-based food products, including hamburgers and ready-to-eat items, while BRF’s portfolio covers pork and poultry farming, meat processing, frozen and processed goods, pasta, margarine, pet food, and distribution networks.

Regulators noted that the companies’ joint participation in markets where they directly compete remains below 20 percent, which is considered outside the threshold of dominance.

In addition, the SG found that in vertically related markets, where one company’s activities feed into another’s supply chain, the combined share does not exceed 30 percent.

Concerns were raised before the ruling, however, when rival Minerva Foods asked for closer examination of the deal.

The company pointed to the involvement of Saudi Agricultural and Livestock Investment Co. (SALIC), which previously held shares in BRF through its subsidiary SALIC International Investment Co. (SIIC), while also maintaining a stake in Minerva.

Minerva argued that such cross-holdings could potentially compromise competitive dynamics within the sector.

That issue was partially resolved when SALIC divested its entire position in BRF last week, selling 185,556,900 common shares, though the transaction value in US$ was not disclosed.

With CADE’s decision now finalized, Marfrig and BRF are positioned to complete their merger, subject to corporate formalities and shareholder procedures.

The approval marks one of the largest recent moves in Brazil’s protein industry, combining two major players with wide-ranging operations across beef, poultry, and processed foods.

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