Brazil

Marfrig and BRF may merge into a giant group

Mergers & Acquisitions

The move will create a giant meatpacking company with significant exposure in the Asian market.

Posted on Jun 04 ,02:38

Marfrig and BRF may merge into a giant group

Brazilian companies BRF and Marfrig are in talks for a potential merger, according to sources from inside. Under the pending new deal, BRF shareholders would assume 85% equity ownership and Marfrig will cover 15%, informs Food Ingredients First magazine.
Such a move will allow the firms to "a world leader in the protein market with wide geographical and product diversification", said different sources with knowledge about the talks.
The potential merger may include the consolidation of assets and shares in a new company, though no structure has yet been defined. The firms’ combined net revenues for last year were estimated at around BRL 76 billion ($19.4 billion).
The potential merger highlights the uptick in business for Brazilian meat companies, noted as the onset of African swine fever continues to grip Chinese pork markets. Asia’s biggest pork producer and consumer is projected to lose 10% of its pork production this year due to the disease.
As a result, prices and trade volumes outside of pork are expected to rise for chicken, beef, seafood and even plant-based alternatives – leading to a surge in revenue for related suppliers. Both companies have a significant presence in the Brazilian, US, Latin American, Middle Eastern and Asian markets.

 NEWSLETTER - Stay informed with the latest news!

Comments





Similar articles

GERMANY

Vion strengthens demand-driven chain concept Good Farming Balance for the future

Ever since Vion introduced Good Farming Star in 2010, the company has been at the forefront of bu...


Read more Read more
DENMARK

Danish Crown becomes co-owner of promising climate technology

It may sound strange that a burning gas torch at a slurry tank can reduce the climate footprint o...


Read more Read more
GERMANY

Germany: Poultry meat and eggs are produced sustainably and are important for a balanced diet

The recommended amount of meat consumed does not correspond in any way to the national consumptio...


Read more Read more
Websolutions by Angular Software and SpiderClass