Brazilian meat-packing business BRF and Marfrig Global Foods have ended negotiations of a potential business merger between the two companies, according to an announcement made last week.
The potential new entity would have been the world’s fourth largest meat-packer after JBS, Tyson Foods and China’s WH Group. The decision to halt talks stems from the fact that the parties were unable to reach an agreement on the governance of the combined company, had the transaction occurred.
Earlier this year, the two companies agreed to a memorandum of understanding (MOU), giving them 90 days, and possibly 30 more days, to negotiate the potential combination of assets and shares.
According to BRF, “the commercial relationship between the Company and Marfrig will remain unchanged and that there will be no modifications to the practices, conditions and terms set forth in the existing agreements entered into by both parties.”
According to Reuters, the collapse of the deal will leave BRF, which has been trying to restructure under a team chosen by Pedro Parente, under renewed pressure to cut debt and boost revenue.
© FoodBev Media Ltd 2019