View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
July 12, 2019

Marfrig, BRF merger talks end without deal over “governance” issues

Merger talks between Brazilian meat processors BRF and Marfrig Global Foods have ended without a deal following discussions that started in May.

By Dean Best

Merger talks between Brazilian meat processors BRF and Marfrig Global Foods have ended without a deal following discussions that started in May.

Free Report
img

How can your business build resilience within the ESG space?

ESG is a key theme impacting companies across all sectors globally. It has emerged as the top theme among company filings, with a rising focus on SDG 16 (Peace, Justice, and Strong Institutions) amidst current geopolitical tensions and sustainability-driven investments. Leading sectors with the highest active jobs in this space include aerospace and defense, automotive, banking and payments, construction, and consumer, with many companies actively looking to establish ESG-related expertise. For more information related to company filings and job analytics, as well as key insights across the latest news, deals, and patents, consult our full report. This report will help you to:
  • Identify the top trending themes relevant to ESG across all sectors
  • Monitor investment and innovation landscape in ESG
  • Track key events and social media mentions related to ESG
Download our full report to understand how you can use GlobalData’s trusted insight to develop your business in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

The two parties could not agree on the management structure of a new enterprise that would have created a leading player in worldwide poultry and beef markets.

Discussions to combine the two firms started in May when both entered a 90-day negotiating period to finalise the terms of a deal, which would have established an enlarged entity better able to compete with the likes of Tyson Foods in the US and Brazil’s JBS. 

Last year, Marfrig bought a 51% stake Missouri-based National Beef Packing Company to become the world’s second-largest beef processor. The transaction had been opposed by the United States Cattlemen’s Association and anti-trust body the Organisation for Competitive Markets, which were concerned about the increasing consolidation in the global meat industry.

A statement from Marfrig confirming the talks had ended said: “The termination of the negotiations was motivated by the fact that management of Marfrig and could not agree on the governance of the entity resulting from the eventual implementation of the transaction. Notwithstanding the foregoing, such termination shall not affect other ongoing commercial relationships among the Company and BRF.”

The discussions ended under mutual agreement, it added.

Meanwhile, Marfrig said it will continue to pursue “financial discipline” over leverage, sustainability and corporate governance as it seeks “sustainable value creation to our shareholders”. 

BRF issued its own statement reiterating the comments made by Marfrig: “The companies’ decision stems from the fact that the parties were unable to reach an agreement on the terms and conditions related to the governance that would govern the combined company, had the transaction occurred.” 

Related Companies

Free Report
img

How can your business build resilience within the ESG space?

ESG is a key theme impacting companies across all sectors globally. It has emerged as the top theme among company filings, with a rising focus on SDG 16 (Peace, Justice, and Strong Institutions) amidst current geopolitical tensions and sustainability-driven investments. Leading sectors with the highest active jobs in this space include aerospace and defense, automotive, banking and payments, construction, and consumer, with many companies actively looking to establish ESG-related expertise. For more information related to company filings and job analytics, as well as key insights across the latest news, deals, and patents, consult our full report. This report will help you to:
  • Identify the top trending themes relevant to ESG across all sectors
  • Monitor investment and innovation landscape in ESG
  • Track key events and social media mentions related to ESG
Download our full report to understand how you can use GlobalData’s trusted insight to develop your business in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food