The potential merger between Brazilian meat giants BRF and Marfrig has met some resistance within the former company’s board, media reports have suggested.
News agency Reuters, quoting “three people with knowledge of the matter”, said a minority of the BRF board has resisted the plan for the business to unite to form of the world’s largest meat producers.
The companies announced on Friday (31 May) they were discussing a potential deal that would combine BRF, which is a large player in pork and poultry, and Marfrig, a beef packer second in size globally to US-based JBS.
Reuters said that BRF’s ten-strong board did not universally approve the plan but its sources did not disclose the vote tally.
They said dissenters questioned how a tie-up would fit in with BRF’s stated strategy of cutting debt and selling assets after a string of losses.
However, BRF and Marfrig have said they were discussing an all-share deal, which would not increase BRF’s debt.
just-food asked BRF for a response to this story but the company declined to comment.