Saudi Investor Sells BRF Stake Ahead of Billion-Dollar Merger

Saudi investor Salic International Investment sold an 11% stake in BRF before the company's $2.6 billion merger with Marfrig. The sale eliminates a hurdle for the merger, as the investor still holds an economic interest in BRF through derivatives. The transaction is seen as a strategic move to preserve economic rights, reduce tax risks, and ensure regulatory compliance.

In a strategic move to facilitate the $2.6 billion merger between BRF SA and Marfrig Global Foods SA, Saudi investor Salic International Investment Co. has sold its 11% stake in BRF. The transaction, which occurred through an agreement with Citigroup Inc. to swap shares into derivatives, aims to eliminate potential regulatory hurdles and preserve economic interests [1].

The sale comes amidst ongoing regulatory scrutiny by Brazil's antitrust regulator, Cade. The regulator had requested additional information from Salic regarding its shareholding in competing companies, particularly given Salic's significant stake in Minerva SA, a beef supplier. By selling its BRF shares and entering into derivatives, Salic has addressed these concerns and ensured compliance [2].

The derivatives agreement allows Salic to maintain an economic interest in BRF while removing the direct stake, which could have raised questions about potential conflicts of interest. This move is seen as a strategic solution that preserves economic rights, reduces tax risks, and ensures regulatory compliance [2].

The merger, approved by shareholders of both companies, remains subject to regulatory approval. Upon completion, the combined entity will be known as MBRF Global Foods Company SA. The transaction is expected to streamline operations and enhance market competitiveness.

References:
[1] https://www.wattagnet.com/business-markets/mergers-acquisitions/news/15754406/saudi-arabias-salic-sells-185556900-brf-shares
[2] https://www.bloomberg.com/news/articles/2025-09-03/saudi-investor-sells-brf-shares-before-2-6-billion-meat-deal