Marfrig raises stake in Brazilian peer BRF to 31.66%

Brazilian meat company Marfrig Global Foods has increased its stake in BRF to 31.66%, two weeks after the firm revealed that it had acquired a quarter of its competitor’s shares for around $800 million.

In recent weeks, Marfrig has been buying up BRF shares in open market transactions, according to Reuters. In a statement, the beef producer disclosed that it now holds 257,267,671 BRF common shares.

Marfrig previously claimed that its purchase of a 24% stake in BRF, announced last month, was part of its aim to diversify its holdings and that it did not intend to elect members to BRF’s board of directors or exert any influence over the activities of the company. 

The Brazilian meat giant has now reiterated these intentions.

“Marfrig reaffirms that the acquisition of the aforementioned stake is aimed at diversifying investments in a segment that complements its industry,” the company said in a statement.

“Marfrig also informs that…[it] does not intend to elect members to the board of directors or exert influence over BRF’s activities.”

The transactions come around two years after the companies entered into talks to merge and create one of the world’s largest meat producers, however negotiations ended a few months later.

BRF’s bylaws require that an investor that reaches a 33.33% stake in the firm make a tender offer for the rest of its shares, according to Reuters.