BRF, Marfrig Global Foods end merger talks

BRF and Marfrig Global Foods have terminated negotiations concerning the possible combination of the two Brazil-based companies.

Roy Graber Headshot
(stockwerk-fotodesign | Bigstock)
(stockwerk-fotodesign | Bigstock)

BRF and Marfrig Global Foods have terminated negotiations concerning the possible combination of the two Brazil-based companies.

In late May, the two parties signed a memorandum of understanding to discuss the possibility of a business merger, but in material facts posted on both companies’ investor relations webpages on July 11, it was announced that such a merger is no longer being discussed.

According to Marfrig Global Foods, the termination of the negotiations “was motivated by the fact that managements of Marfrig and BRF SA could not agree on the governance of the entity resulting from the eventual implementation of the transaction.” The BRF statement expressed similar sentiments.

However, both companies’ material facts revealed that the commercial relationship between the two businesses would remain unchanged and there were no modifications to the practices, conditions and term set forth in existing agreements entered by both parties.

Had a merger been approved a world leader in the protein market would have been created with a wide geographical reach and diverse product offerings in the poultry, beef and pork markets.

BRF, according to the WATTAgNet Top Poultry Companies Database, is the third largest poultry company in the world. However, BRF downsized since those rankings were published. The company sold its operations in Thailand, the Netherlands and the United Kingdom to Tyson Foods on June 3. BRF, formerly known as Brasil Foods, had earlier divested of its operations in Argentina.

Marfrig, in November 2018, exited the poultry industry with the sale of its Keystone Foods subsidiary, which was also purchased by Tyson Foods. At the time, Marfrig stated it was doing so to put more emphasis on its beef operations and to leverage its purchase of the majority stake in the U.S.-based National Beef Packing Co. Marfrig is also the former owner of Moy Park, which is now a subsidiary of Pilgrim’s Pride.

Page 1 of 1576
Next Page