Marfrig Global Foods now owns more than 40% of BRF

Marfrig Global Foods has been investing in BRF since 2021.

Roy Graber Headshot
Marfrig Plant
Courtesy Marfrig Global Foods

Marfrig Global Foods continues to invest in fellow Brazilian protein company BRF. After the most recent transaction, Marfrig now holds more than a 40% stake in the company.

In an announcement to the market that can be found on the BRF investor relations webpage, the companies announced that following the closing of the markets on September 25, Marfrig now owns 673,879,961 shares of BRF, which accounts for 40.0529% of BRF’s stock.

According to the announcement, the transaction aims to increase Marfrig’s shareholding in BRF, but it does not aim to change the current shareholding control composition or the administrative structure of the company. It also stated that no contracts or agreements have been executed by Marfrig regulating the exercise of voting rights or the purchase and sale of company securities.

Prior to the most recent transaction, Marfrig owned 601,890,861 shares of BRF, a 35.7742% stake in the company, according to another announcement to the market, dated September 19.

Marfrig’s continued investment in BRF follows comments made in April by Marcos Antonio Molina dos Santos, who serves as chairman of both companies, revealed that a merger between the two companies, which he referred to as “sister companies,” could happen, but not in the near future.

At the time, the chairman said, “Both companies have a lot of synergies, but, at the moment, each one is focused on its business. But now, the most important thing is not taking the focus away from each company. This year, each one will keep focused on its operations.”

Marfrig and BRF began merger talks in 2019, but both parties disclosed about two months later that it was no longer under discussion.

However, Marfrig began to invest in BRF in 2021, purchasing what was at the time 24.23% of the companies shares. It has steadily increased its stake in BRF ever since.

BRF, according to information from the Top Poultry Companies Survey, is the world’s third largest poultry producer and is also a significant player in the pork industry. Marfrig’s primary protein is beef, although it previously also had a presence in the poultry industry as the parent company to Moy Park and Keystone Foods. Marfrig divested of both companies, with Moy Park now owned by Pilgrim’s Pride and Keystone Foods now owned by Tyson Foods.

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