Minerva seeks to block Marfrig–BRF merger
On June 13, Brazil’s Administrative Council for Economic Defense (Cade) authorized Minerva to act as an interested third party in the review of the merger between Marfrig and BRF. The decision was signed by Cade’s acting superintendent general, Juliana Domingues.
Minerva filed its request on June 10, arguing it has a direct interest in the process since it operates in the same economic segment as Marfrig and BRF.
“There is no doubt about Minerva’s interest in intervening as a third party in this merger proceeding, considering that the company operates in markets directly affected by the transaction,” Cade justified.
According to current legislation, other companies in the sector may also request participation in the process as interested third parties, which allows them to submit economic and technical analyses to contribute to the evaluation of the deal.
Among the main points raised are:
• Conflict of interest through Salic: The Saudi sovereign wealth fund holds a significant stake in both Minerva and the companies involved in the merger. According to Minerva, this could pose a risk of strategic coordination and the sharing of sensitive information between competitors.
• Supply chain risk: Minerva currently supplies fresh beef to BRF, one of the largest food processors in the country. The merger could harm this relationship, as Marfrig—a direct competitor—would take control of BRF.
• Market power: The merger would result in a portfolio of 37 food brands, strengthening bargaining power with supermarkets, wholesalers, and foodservice operators, which could restrict competitors' access to these channels.
• Accelerated approval: The company questioned the summary procedure used in the initial approval, arguing that it is not suitable for a transaction of this scale and market impact.
• Precedent: Minerva also recalled a 2014 case, when Cade recommended restrictions on the company’s attempt to acquire a stake in BRF—a deal with far less market impact than the current merger.
Cade acknowledged that Minerva presented arguments demonstrating the potential economic impact on its operations. Therefore, it opened a 15-day window starting June 12 for the parties involved and third parties to submit appeals to the agency’s Tribunal. If the Tribunal raises no objections, the merger between Marfrig and BRF—which would result in the creation of MBRF Global Foods Company SA, valued at R$ 152 billion—may proceed without restrictions.
Next Wednesday, June 18, Marfrig will hold a shareholders' meeting to deliberate on the progress of the deal. The company had previously stated that Cade’s approval is one of the conditions for moving forward with the merger, Estadão reported.