Marfrig Takes Control of BRF, Creating a New Meat Industry Giant in Brazil

Marfrig Global Foods, one of Brazil’s biggest beef producers, now owns almost 60% of BRF, a leading poultry and pork company.

This move, confirmed in official filings, puts Marfrig firmly in control of BRF after years of buying up shares. The two companies plan to merge, creating a new business called MBRF Global Foods.

If approved, this merger will create a meat industry giant with about 152 billion reais (US$26.75 billion) in yearly sales. The new company will be a major player in beef, chicken, and processed foods.

It will control 22% of Brazil’s beef exports, 35% of the poultry market, and 15% of pet food sales. Marfrig’s U.S. subsidiary, National Beef, will also become part of the group, helping expand sales in North America.

Regulators have closely watched the deal. Brazil’s antitrust agency approved it without conditions, saying it would not hurt competition. However, the country’s securities regulator delayed the final shareholder vote twice.

Minority shareholders wanted more information about the merger, especially about how their shares would be valued. The vote is now set for July 14, and Marfrig’s majority stake means the deal will likely pass.

Company leaders say the merger will cut costs and make the business more competitive worldwide. They expect to save 805 million reais each year, with most of the savings coming in the first year.

The deal could also bring tax benefits of up to 3 billion reais. Investors responded positively, with both companies’ shares rising after the announcement.

This merger will reshape Brazil’s food industry. By joining forces, Marfrig and BRF aim to compete more strongly with global giants like JBS.

They also seek to increase their presence in key export markets like China and the United States. The deal also shows how Brazil’s food companies are changing to stay strong in a tough world market.

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