Brazilian meat company Marfrig has acquired a 24% minority stake in local competitor BRF, as it looks to diversify its investments.
Sources familiar with the matter said the outstanding shares were bought for about $800 million, as cited by Reuters.
Marfrig said the purchase was part of its aim to diversify its holdings “in a segment that has complementarities with its sector of activity in a company where the administration has been carrying out recognised management”.
The Brazilian beef producer also added that it does not intend to elect members to BRF’s board of directors or exert any influence over the activities of the company.
The transaction comes almost two years after the companies entered into talks to merge and create one of the largest meat producers, however negotiations ended a few months later.
While Marfrig’s core focus is beef, BRF processes poultry and pork with most of its plants located in Brazil.
Meanwhile, Marfrig holds a strong position in North America, and the acquisition – according to Reuters – underlines the strength of this division, where consumer demand has been strong and cattle prices relatively low. Both companies compete with JBS, which operates within three proteins: beef, chicken and pork.
© FoodBev Media Ltd 2021
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