Brazil Regulator Gives Final Approval to Marfrig-BRF Deal

(Bloomberg) – Brazil’s antitröst regulator, cattle meat supplier Marfrig Global Foods SA’s $ 2.6 billion chicken manufacturer BRF SA’yı, paved the way for the creation of one of the largest meat companies in the world.

BRF shareholders approved the acquisition of Marfrig last month, but the regulator, known as Cade, delayed a final decision after asking for more time to vote for a member. The agency’s five other consultants voted in favor of the agreement, and on Friday, the competent authority gave full approval during an extraordinary session.

In his decision, Cade did not impose any restriction on the merger.

The process announced in May after the competitor beef supplier Minerva SA expressed his concerns about the competition in the processed food market and the potential impact of the Saudi Arab investor in the new company. In response to the questions during the investigation of the investor Cade, who has a great share in Minerva and BRF, he said he would not affect the united presence.

At the beginning of this week, Salic International Investment Co., Citigroup Inc. and made an agreement to change his shares in BRF to derivatives, which is seen as helping to lead the approval of the agreement. This allowed the Saudi investor to have an economic interest in the company through the derivatives, but directly eliminated his shares.

The United Company MBRF Global Foods Co. will be competing in the world’s best food suppliers. Managers said that the new organization will follow a list of US shares in the United States as part of the pressure of opening the value of the value following a similar movement of the rival JBS NV earlier this year. According to Miguel Gularte, Chairman of the Executive Officer of the BRF, MBRF will also consider transporting its center to the USA, as it will also constitute 43% of the country’s income.

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