One of the six CADE counselors has not yet voted to approve the merger.
Brazil’s antitrust regulator delayed a final decision on beef supplier 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.
The move comes after one member of the nation’s regulator Cade, 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 would create a combined company rivaling the world’s top food suppliers. 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, Marfrig’s Chairman Marcos Molina said last week during an earnings call.
The transaction, 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 effects of Saudi Agricultural and Livestock Investment Co.’s stake in the new company. The Saudi investor, known as Salic, owns major stakes in Minerva and BRF.
Salic, in answer to questions from Cade, said it wouldn’t influence the merged BRF-Marfrig entity.
Source: Bloomberg
