Marfrig acquires 24.23% of BRF. The Brazilian meat giant announced the transaction with a concise note, without the economic details of the deal. According to press sources, the company has invested around 800 million dollars.
Marfrig acquires 24.23%
On Friday, May 21, Marfrig informed “the shareholders and the market that it had acquired ordinary shares issued by BRF through auction”. Through the offer, the Brazilian giant came into possession of 196,869,573 ordinary shares, equivalent to approximately 24.23% of the share capital of BRF. Marfrig did not disclose further details on the operation, but as reported by the news agency Reuters, the company would have paid about 800 million dollars. The acquisition also represents a success for the Brazilian operator, which, two years ago already, tried to close a similar transaction with BRF.
The expansion of the empire
David Tang, vice president of Marfrig who signed the note, writes that “the aforementioned acquisition aims to diversify Marfrig’s investments in a segment that has complementarity with its business sector”.
“Marfrig clarifies that it does not intend to elect members of the board of directors or exercise influence on the business of BRF. And that no contracts or agreements have been entered into governing the exercise of voting rights”, the note continues. BRF is the largest poultry exporter in the world, but it also processes pork.
The operation, according to Reuters, represents an attempt to overcome the competition of JBS, exploiting the penetration of the Brazilian market by BRF, which has plants only in the South American country.
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