Marfrig increases stake in BRF amid merger impasse

Marfrig informed the stock market that it now directly and indirectly holds 58.87% of BRF’s share capital, according to a statement released on Friday. The new shareholder position includes both common shares and derivative financial instruments with and without cash settlement. Of the total, 5.11% consists of derivatives with cash-only settlement, while 990.5 million common shares, including physically settled derivatives, represent 58.87% of the share capital.

The signatories of the notification—Marfrig, MMS Participações, and the investment fund MAMS Fundo de Investimento em Ações—stressed that the operation is not intended to change BRF’s control structure or management, which is already controlled by Marfrig. However, they reiterated that this transaction is part of the proposed incorporation of BRF shares by Marfrig, announced in May.

The market communication came the day after the Securities and Exchange Commission (CVM) postponed BRF’s Extraordinary General Meeting (EGM) for the second time, which was called to decide on the merger. The CVM’s decision responded to requests from minority shareholders who alleged irregularities in the process. The meeting was scheduled for Monday (14), but with the board’s decision, a new date will only be set 21 days after the new information required by the regulator is published.

The merger has already been approved by CADE (Administrative Council for Economic Defense) but faces challenges from competitors such as Minerva, which has filed an appeal with the antitrust body.