Marfrig acquires a quarter of the Brf shares
An operation of approximately 800 million dollars
The Brazilian meat company Marfrig has acquired a minority stake of 24% of the local competitor Brf. The shares were purchased for approximately $ 800 million, as confirmed by Reuters. Marfrig explained that the acquisition is part of the plan to diversify its portfolio "into a segment that is complementary to the business sector in which it operates". The Brazilian beef producer also added that it does not intend to elect Brf board members or exert any influence on the company's activities.
The transaction comes nearly two years after the companies entered into talks to merge and create one of the largest meat producers in the country, however the negotiations stalled after a few months. While Marfrig's main product is beef, Brf processes poultry and pork in most of its plants located in Brazil. Marfrig holds a strong position in North America, where consumer demand is strong and livestock prices relatively low. Both companies are competitors of JBS, which operates in the production of three proteins: beef, chicken and pork.
EFA News - European Food Agency