Brazil regulator postpones shareholder meeting on Marfrig-BRF deal

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June 16, 2025 6:57 PM EDT

FILE PHOTO: A truck loaded with chickens passes in front of a unit of BRF S.A., a food producing industry, in the city of Lajeado, Rio Grande do Sul, Brazil, March 27, 2025. REUTERS/Diego Vara/File Photo

SAO PAULO (Reuters) -Brazilian securities regulator CVM has postponed a shareholder vote on the takeover of poultry and pork processor BRF by beef processor Marfrig, the companies said in a securities filing on Tuesday.

Shareholders from both firms were set to vote on Wednesday on a deal announced in May that would allow Marfrig - already the holder of a controlling stake in BRF - to complete its takeover in a share-swap deal, forming a global company called MBRF.

According to a document on the CVM website, the regulator postponed the meeting for 21 days following a request from minority shareholders, who said they need more information to understand the criteria for each company's valuation and the deal's exchange ratio.

Some funds are complaining about the proposed terms, said Igor Guedes, equity analyst at Genial Investimentos, adding that nearly half of remote votes cast related to the plan were abstentions.

“Probably a significant portion of the abstention is related with the view of BRF’s minority shareholders that the merger generates financial value, but even so, the proposed exchange ratio would have been unfair.”

“We understand the discomfort that exists among BRF minority shareholders," said Leonardo Alencar, an equity analyst at XP Investimentos. Although the CVM suggested this 21-day postponement, he believes that the proposed terms of the deal will not change and the transaction will be approved.

BRF and Marfrig in their joint securities filing said the regulator requested additional information from both companies on the terms of their proposed tie-up.

They added that they were analyzing the CVM's decision and studying their options, including a potential request for reconsideration of the postponement.

The companies had previously said that the takeover was subject to approvals, including from minority shareholders.

(Reporting by Andre Romani, Patricia Vilas Boas, Roberto Samora and Ana Mano; Editing by Kylie Madry, Gabriel Araujo, Joe Bavier and Mark Porter)


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