12 months ago
Marfrig Wins Approval for BRF Takeover, Forming Meat Giant
Imagine two big food companies in Brazil, Marfrig and BRF, wanting to merge.
The government had to say if it was okay.
After some time, they finally said yes.
This means the two companies can join together and become even bigger.
Some people worried because it might mean less competition.
Now, they'll become one of the world's biggest meat companies.
They might even list their shares in the US and possibly move their headquarters there, since a large part of their money comes from the US.
Brazil's antitrust regulator approved Marfrig's $2.6 billion takeover of BRF.
The deal creates a major global meat company.
Cade, the regulator, did not impose restrictions on the merger.
A Saudi Arabian investor's stake raised competition concerns.
The combined company may list shares and relocate headquarters to the US.
- Who
- Marfrig Global Foods SA and BRF SA
- What
- Brazil’s antitrust regulator approved Marfrig Global Foods SA’s takeover of BRF SA.
- Where
- Brazil
- When
- The final approval was given recently, after the deal was announced in May.
- Why
- To form one of the world’s largest meat companies.
Concerns Raised
Company Benefits
Market Competition
Concerns Raised
Rival beef supplier Minerva SA raised concerns over competition.
Company Benefits
The merged entity is set to become a major global food supplier.
Key facts
- Companies Involved
- Marfrig Global Foods SA, BRF SA
- Deal Value
- $2.6 billion
- Regulator
- Cade (Brazil's antitrust regulator)
- Combined Company Name
- MBRF Global Foods Co.
- Saudi Arabian Investor
- Salic International Investment Co.
- US Revenue Share
- 43%
Quotes
Banco Master
The target of the proposed acquisition
“the bank remains confident in its strategy and operations.”
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