Brazilian beef merger shelved

By Aidan Fortune contact

- Last updated on GMT

Brazilian beef merger shelved

Related tags: Beef

A proposed merger between two Brazilian beef giants has been shut down following talks.

In May, BRF and Marfrig announced that they were in talks for a potential partnership​ that would have created a new entity with a combined sales of R$17.4bn in the first quarter of the year.

However now that the talks have concluded, the “commercial relationship will remain unchanged”​. It is understood that the businesses were unable to reach an agreement on the terms and conditions related to the governance structure for the proposed combined company. The two businesses did have 90 days, with an option to extend by a further 30 days, to negotiate however that amount of time wasn’t required.

If it the merger had gone ahead, the businesses would have used the partnership to reduce exposure to sector risks and generate synergies due to the balance and complementarity of products, services and geographic diversification, with a material presence in Brazil, the United States, Latin America, the Middle East, and Asia.

It is expected that there will be no modifications to the practices, conditions and terms set forth in the existing agreements entered into by both parties.

BRF said that the company's administration “reinforces its commitment to implement the Strategic Plan guidelines and to continue evaluating business opportunities that may generate value for its shareholders”​.

Related topics: Financial, Brazil, Beef

Related news

Related products

The unique natural anti-oxidant for meat applications

The unique natural anti-oxidant for meat applications

Kancor Ingredients Limited | 28-Feb-2019 | Technical / White Paper

Fresh meat is preferred in bright red colour but is highly prone to oxidation and is colour sensitive to extracts. Kancor’s OxiKan R, a highly refined...

Microbiological safety of raw-fermented sausages

Microbiological safety of raw-fermented sausages

Jungbunzlauer | 18-Feb-2019 | Technical / White Paper

Raw-fermented sausages are prone to the contamination with pathogens such as Salmonella and Listeria. Jungbunzlauer gives a new impetus to the exploration...

From trust grows success

From trust grows success

K+G Wetter | 09-Oct-2017 | Data Sheet

The award winning company Wünsch’s Fleischspezialitäten sets new quality standards for meat products – using machines made by K+G Wetter.

Related suppliers

comments

Post your comment

We will not publish your email address on the website

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.