Marfrig and BRF Announce Merger, Creating a R$152 Billion Food Giant

Food industry giants Marfrig and BRF announced on Thursday (May 15) the merger of their businesses and the creation of MBRF Global Foods Company, a new entity with a consolidated net revenue of R$152 billion over the past 12 months.

“The merger unlocks value and paves the way for the company’s potential redomiciling abroad,” said Marcos Molina, controlling shareholder and chairman of the boards of both Marfrig and BRF, in an interview with Valor.

As part of the deal, BRF and Marfrig shareholders will receive what the group considers substantial dividend payouts. BRF will distribute up to R$3.52 billion, while Marfrig will distribute R$2.5 billion.

According to Molina, the new company, which combines Marfrig, BRF, and U.S.-based National Beef, sees its growth prospects primarily in the United States, the Middle East, and China. Of MBRF’s total revenue, 43% will come from the U.S. market.

Given this global footprint, North America is one potential redomiciling option under consideration.

“This would bring significant advantages, such as high liquidity in U.S. markets, access to more attractive capital costs, and potential revaluation of company multiples,” Molina explained.

Molina noted that BRF has been preparing for this moment for the past three years, since Marfrig took control of the poultry and pork producer. Following BRF’s return to profitability, the two companies had already been collaborating in areas such as commercial synergies.

In Molina’s view, the companies had already extracted all possible synergies under their previous structure, making the whole business combination essential for unlocking the next phase of opportunities.

Identified commercial and logistics synergies are expected to total R$805 million per year, with R$400 to R$500 million anticipated in the first 12 months, and the remainder realized in the medium to long term.

Revenue and Cost Synergies

The merger is expected to generate additional synergies of R$485 million per year in revenue and cost optimization.

Cost savings of approximately R$320 million annually are projected through initiatives such as:

• Unification of commercial and logistics structures
• Consolidation of a single operating system
• Corporate structure optimization

Under current tax regulations, the company expects to benefit from tax optimization strategies, including accelerated federal and state tax credits monetization. This could generate up to R$3 billion in present-value savings.

Timeline and Market Position

Shareholder meetings will be called to vote on the merger, with June 18 as the proposed date. The companies expect the transaction to be finalized by July 28.

MBRF’s sales composition will be:

• 38% processed foods
• 34% poultry and pork
• 29% beef

The newly formed MBRF Global Foods Company will emerge as one of the largest food companies in the world, operating in 117 countries with brands including Sadia, Perdigão, Qualy, Banvit, and Bassi. It will offer a multi-protein portfolio that includes beef, pork, poultry, processed products, ready meals, and pet food.

Source: Globo Rural

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