The chairman of Brazilian meat packer Marfrig has signed an agreement with federal prosecutors aimed at covering any potential damages arising from an on-going corruption investigation, the company has revealed.
Marcos Molina dos Santos’s damages pact relates to the so-called “Cui Bono” probe that covers alleged irregularities in the approval of loans from federal savings bank Caixa Economica Federal to Marfrig between 2011 and 2013.
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Marfrig said in a statement: “The agreement is not a plea deal or collaboration, and it does not imply an admission of guilt.”
The company said it was exempt from making any payments stemming from Santos’ agreement with the prosecutors.
Meanwhile, Marfrig is attempting to buy a majority 51% stake in US firm National Beef for US$969m in a transaction that would make the Brazilian company the world’s second-largest beef producer.
However, the move is facing opposition from US senators and the United States Cattlemen’s Association.
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By GlobalDataMarfrig’s move for National Beef is seen as a move to focus the business on its core beef category.
To that end, the Brazilian firm put its Keystone division up for sale and has engaged JPMorgan and Rabobank to oversee the disposal.
Marfrig said today (23 May) five companies have now moved on to phase two of the sales process, which includes access to the virtual data room, management presentations, site visits in the US and Asia region, and the submission of binding offer during the month of June.
