Marfrig Global Foods buys 24.23% of BRF

Marfrig Global Foods has purchased 24.23% of the shares of fellow Brazil-based company BRF, according to notices on each company’s investor relations webpages.

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(www.gesagro.com.br)
(www.gesagro.com.br)

Marfrig Global Foods has purchased 24.23% of the shares of fellow Brazil-based company BRF, according to notices on each company’s investor relations webpages.

According to the notices, both published on May 21, the number of shares purchased by Marfrig was 196,869,573. The notices also stated that Marfrig does not intend to elect members to the BRF board of directors or exert influence over the activities of BRF and that no contracts or agreements that regulate the exercise of voting rights have been entered into by Marfrig.

“The aforementioned acquisition in BRF aims to diversity Marfrig’s investments in a segment that has complementaries with its sector of activity in a company where the administration has been carrying out recognized management,” a material fact from Marfrig Global Foods read.

Marfrig’s decision to purchase a stake in BRF, formerly known as Brasil Foods, came about two years after the two companies had taken part in merger talks. However, it was announced on July 11, 2019 that such a merger was no longer being discussed.

While both Brazilian companies have an international presence and a history of a diversified portfolio in animal proteins, Marfrig had earlier divested of significant assets in the poultry industry. In November 2018, Marfrig sold its Keystone Foods subsidiary, then the tenth largest poultry company in the United States, to Tyson Foods, stating that 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 Global Foods is also the former owner of Northern Ireland-based poultry company Moy Park, which it sold to JBS. Moy Park is presently owned by Pilgrim’s Pride.

BRF, according to WATT Global Media Top Companies surveys, is the world’s third largest poultry producer and seventh largest feed producer.

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