Brazil's Antitrust Regulator Delays Decision on Marfrig-BRF Merger

Brazil's antitrust regulator, Cade, has delayed a final decision on Marfrig's takeover of BRF, creating one of the world's largest meat companies. Five counselors have voted in favor of approval, but one counselor requested more time to submit a vote. The deal has been held up due to concerns over competition in the processed food market and the influence of Saudi Agricultural and Livestock Investment Co.'s stake in the new company.

Brazil's antitrust regulator, Cade, has delayed a final decision on Marfrig Global Foods SA's takeover of chicken producer BRF SA, further dragging out the completion of a deal that would create one of the world’s largest meat companies [1]. The move comes after one member of the nation’s regulator, counselor Carlos Jacques Vieira Gomes, requested more time to submit a vote. The antitrust agency is formed by a total of six counselors, and five of them already voted in favor of giving approval.

The deal, announced three months ago, has already been held up after rival beef supplier Minerva SA raised concerns over competition in the processed food market and the effects of Saudi Agricultural and Livestock Investment Co.’s (Salic) stake in the new company [1]. The Saudi investor, known as Salic, owns major stakes in Minerva and BRF. Salic, in response to questions from Cade, stated it wouldn’t influence the merged BRF-Marfrig entity.

The new firm, which will be called MBRF, plans to prepare for a listing of shares in the US market as long as it brings more value and reduces capital cost, according to Marfrig’s Chairman Marcos Molina [1]. The transaction has been held up due to these concerns, further complicating the timeline for the merger.

Meanwhile, Brazilian food processor BRF, the world's largest chicken exporter, reported a net profit of 735 million reais ($136 million) in the second quarter despite trade disruptions caused by an outbreak of bird flu in May [2]. The company, which also processes pork and prepared food products, said earnings before interest, tax, depreciation, and amortization (EBITDA) were 2.5 billion reais in the period, in line with analysts' forecasts.

Separately, Brazil’s antitrust regulator has opened a probe into major soybean traders, alleging that an agreement focused on preventing deforestation in the Amazon forest raises the possibility of a purchasing cartel in the grain-export market [3]. The investigation follows increasing pressure from farmers groups against the soybeans moratorium, a public commitment by traders to avoid sourcing soybeans from land deforested in the Amazon after 2008. The antitrust body ordered the suspension of work on auditing farmers and sharing information on compliance, effectively putting the moratorium on hold.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-20/brazil-s-regulator-delays-final-decision-on-marfrig-brf-deal
[2] https://www.reuters.com/world/americas/brazils-brf-posts-q2-net-profit-136-mln-dodging-bird-flu-trade-disruptions-2025-08-14/
[3] https://www.farmprogress.com/farm-business/brazil-probes-soy-traders-as-amazon-pact-raises-cartel-worry