At Minerva’s request, Brazil’s Administrative Council for Economic Defense (CADE) has asked the Saudi fund Salic for information regarding its shareholding in BRF, Marfrig, and Minerva Foods.
CADE’s president, Gustavo Freitas de Lima, issued an order for Salic to provide, within 10 calendar days, details on its direct or indirect control structure, shareholding stakes, and preferential rights in those companies, as well as any possible memorandums of understanding related to the merger between BRF and Marfrig, according to TheAgriBiz.
The measure was taken after Minerva, which filed as a third party in the BRF–Marfrig merger process, argued that Salic’s simultaneous shareholding in all three companies creates a potential conflict of interest and a risk of coordination among competitors. Salic holds approximately 25% of Minerva, is part of its controlling block, and, after the merger, would have about 10% of the new MBRF, in addition to maintaining a roughly 11% stake in BRF.
According to Minerva, this position would allow Salic to access sensitive information and coordinate strategies in the fresh meat market, including the food service segment, where the company is also active.
Salic, for its part, must clarify whether it is a passive investor in BRF and the future MBRF. It currently has no representation on the boards of those companies but holds three seats on Minerva’s board and maintains beef supply contracts with it, which do not exist with BRF or Marfrig.
In addition to Minerva, the Latache fund also filed an appeal with CADE requesting a review of the transaction and proposing corrective measures, such as the sale of certain BRF brands, to avoid market concentration.
The BRF–Marfrig merger had previously been approved by CADE through a fast-track procedure, arguing that the combined shares in the relevant markets would not exceed 20% in horizontal overlaps and 30% in vertical integration. However, with the new appeals filed, the process remains open and subject to possible conditions.
