BRF analyzes potential business combination with Marfrig
The new company would be an industry leader in Brazil, United States, Latin America, Middle East and Asia
BRF signed today a memorandum of understanding with Marfrig for the two companies to assess the possibility of combining their businesses.
The companies will have a period of 90 days, which may be extended for an additional 30 days, to conduct more studies and determine the terms of a final agreement. The new company would have a high level of corporate governance, adopt policies to achieve an investment grade credit rating and be managed in accordance with the principles of integrity, quality, safety and sustainability.
The preliminary terms of the transaction do not envisage any cash disbursement, but rather an exchange of shares that would result in the attribution of 84.98% of the equity interest in the new company to BRF shareholders and 15.02% to Marfrig shareholders.
The assessment is that the business would be complementary for the two companies in terms of their market segments, diversify their mix of geographies and proteins and reduce risks. The new company resulting from the business combination could become the industry leader in its markets.
If implemented, the transaction would reinforce the commitment to deleveraging and adjusting the capital structure, the focus on the Brazil and Halal markets, innovation, the expansion of the product portfolio and into new international markets, and the stability of the management model.
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