Publicly-listed Marfrig announced on Friday (21 May) it had acquired a 24.23% interest in BRF through the purchase of more than 196 million shares, explaining its aims through the transaction are to diversify “investments in a segment that has complementarities with its sector of activity”.

Marfrig, headquartered in Sao Paulo, said it has no plan to elect members to the BRF board nor to “exert influence over the activities” of its Brazilian peer.

BRF, which mainly processes chicken and pork, acknowledged the deal via its own statement at the weekend, adding that Marfrig also has no plan to “promote changes in the control or in the administrative structure” of the company.

Marfrig and BRF had entered discussions in 2019 over a possible combination. However, that never materialised.

At the time, Marfrig said a merger would result in “the creation of a world leader in the protein market with wide geographical and product diversification” and it would reduce risk and “exploit operational and financial synergies due to the balance and complementarity of products, services and geographic diversification”.

Last year, Marfrig and another Brazil-based meat group, Minerva Foods, both denied they had opened merger talks.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Meanwhile, sources for news agency Reuters said the minority deal between Marfrig and BRF amounts to US$800m.

In 2020, Marfrig generated net revenues of BRL67.48bn (US$12.58bn). BRF posted sales of BRL39.5bn.

Just Food Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Just Food Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now