The Court of the Administrative Council of Economic Defense (Cade) from Brazil approved a Fusion agreement Between the meat producer vaccine Marfrig and the food processor BRFcompanies reported in a joint statement presented on Friday. The transaction was approved without restrictions because it does not raise any competition problem, Cade said in a press release.
“The joint market share of companies in markets with horizontal overlap, in which both offer similar and competitors, is less than 20%,” said Cade.
Companies announced in May a plan for Marfrig, who was already the owner of a majority participation in BRF, bought the remaining actions of that company in a securities exchange operation. According to the agreement, each BRF paper will redeem by 0.8521 Shares of Marfrig.
The combination of Marfrig and BRF results in a new company called MBRFanother world producer and exporter of food based in Brazil and factories in multiple locations, including the United States, the Middle East and China. Before the last decision of the CADE, the Food Company Rival Minerva requested authorization to examine the agreement more carefully due to a minority shareholder that shared with BRF.
Salic International Investment Company, a subsidiary of exclusive property of Saudi Agricultural and Livestock Investment Company, announced earlier this week that it had changed its BRF investment structure.
