Saudi investment SALIC firm to sell entire stake in BRF
Traders say higher costs are cutting into their earnings
BRAZIL – The Saudi Agricultural and Livestock Investment Co. (SALIC) has disposed of its full holding in Brazilian meat company BRF S.A., amounting to 185,556,900 common shares.
In a statement posted on BRF’s investor relations page, SALIC described the decision as one aimed at increasing portfolio flexibility and managing risk, while also simplifying cross-border transactions and ensuring governance neutrality during and after the merger discussions.
The announcement comes at a time when BRF is advancing with a proposed merger with Marfrig Global Foods S.A., another major meat producer in Brazil.
Merger plans
The companies first disclosed in May that they were working toward combining their operations.
The proposal projects that the merged entity would generate annual cost savings and additional revenue estimated at US$85.6 million (R$485 million).
Initial details of the agreement showed that SALIC, which had been a shareholder in BRF since 2023, would have been allocated a 10.6% stake in the new company.
Other BRF shareholders were expected to control 32.3%, while Marfrig shareholders outside of the main block would hold 15.6%.
Marfrig’s role
Marfrig has been steadily expanding its presence in BRF over the past four years. In 2021, the company started with a 24.23% purchase of shares.
By September 2023, that shareholding had risen to 40.05%, strengthening Marfrig’s position in BRF.
The following year, Marfrig secured a majority ownership, giving it greater influence over the company’s direction.
As part of the current merger plan, BRF is set to become a wholly owned subsidiary of Marfrig, consolidating the two businesses under a single corporate structure.
SALIC, in contrast, has chosen to fully exit BRF, framing the move as a structural shift in its investment approach rather than a change in overall strategy.
The sale reshapes the shareholder composition of BRF at a critical point in its integration with Marfrig, which continues to move through regulatory and governance procedures.
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