Cade Approves Merger of BRF and Marfrig, Creating Food Giant

The Brazilian antitrust regulator Cade approved the merger between BRF and Marfrig, creating a global food giant. The $2.6 billion deal was cleared without conditions. The BRF's shareholders had already approved the acquisition, but the Cade delayed its decision. The new entity, MBRF Global Foods, will compete with top food providers worldwide and may list on US stock exchanges.

Brazil's antitrust regulator, Cade, has approved the $2.6 billion merger between BRF and Marfrig, creating a global food giant known as MBRF Global Foods. The deal, which was initially announced in June 2025, has now been cleared without any conditions by Cade [1].

The approval comes after a thorough review by Cade, which assessed whether the acquisition would lead to a substantial reduction in competition in the meat processing sector. Cade's decision suggests that it does not believe the acquisition will create significant antitrust concerns [1].

The BRF-Marfrig merger is part of a broader trend of consolidation in the global meat industry, driven by increasing demand for protein and the need for operational efficiencies. BRF, one of the world's largest poultry processors, and Marfrig, a major beef processor, both have a strong presence in Brazil's meat market. The combination of these two companies is expected to create a more integrated and efficient supply chain, potentially leading to cost savings and improved product offerings [1].

The new entity, MBRF Global Foods, will compete with top food providers worldwide and may list on US stock exchanges. Investors will be closely monitoring the integration process and its impact on the merged entity's financial performance. The deal's approval by Cade is a positive sign for the combined company, as it eliminates a key regulatory hurdle. However, the success of the integration will depend on the companies' ability to realize synergies and maintain market share in the competitive meat industry [1].

References:
[1] Brazil's CADE Approves BRF-Marfrig Acquisition: A Strategic Shift in the Meat Industry [https://www.reuters.com/business/finance/brazils-cade-approves-brf-marfrig-acquisition-strategic-shift-meat-industry-2025-09-02/]