BTG Pactual Buys Nearly 8% of BRF as Merger Talks Intensify

BTG Pactual, one of Brazil’s largest investment banks, has purchased about 131 million shares of BRF S.A., giving it a 7.79% stake in the major food producer.

This investment, confirmed by BRF in an official filing on July 14, 2025, makes BTG Pactual a key shareholder at a sensitive time for the company. Alongside the shares, BTG Pactual holds options contracts tied to BRF stock.

These include 106.9 million options that could turn into real shares and 3 million that pay out in cash if certain price conditions are met. The bank has stated it does not intend to control or manage BRF, but is investing for financial reasons.

This move comes as BRF faces a possible merger with Marfrig, its controlling shareholder, which already owns nearly 59% of BRF. Marfrig wants to combine the two companies into a new giant, MBRF Global Foods.

If approved, the merger would create one of Brazil’s largest food companies, with a major share of the beef and poultry export markets and a strong position in global pet food.

The merger process has faced delays. Brazil’s securities regulator, CVM, postponed the shareholder vote twice, each time for 21 days, after requests for more information from minority shareholders and independent committees.

These delays highlight concerns about transparency and fairness for all investors. The new date for the vote will be set after all required information is provided.

Marfrig-BRF Merger Gains Momentum

Brazil’s antitrust authority, CADE, has already approved the merger. Marfrig has worked to reduce its debt and improve profits, reporting a 12% drop in net debt to $6.3 billion and a 59% jump in adjusted EBITDA to R$13.6 billion in 2024.

Analysts expect the merger to bring tax savings of up to R$3 billion and annual cost synergies of over R$1.2 billion. BTG Pactual’s large investment signals confidence in BRF’s future and the importance of this merger.

The bank’s use of shares and options shows a careful approach to risk and opportunity. This deal could reshape Brazil’s food industry, affecting supply, competition, and investor returns.

All information in this article comes from official company statements, regulatory filings, and public records. No data or claims are based on unofficial or speculative sources.

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