Marfrig () and BRF () announced on Thursday (15) the merger of their businesses, with Marfrig proposing the incorporation of all BRF issuance actions not detained by the company, according to a relevant fact.
The new company will be called MBRF and will be holding all brands, being the composition of Marfrig, BRF and National Beef.
According to the companies, they consolidate themselves as one of the largest food companies in the world, based on “a truly multiprotein platform, with iconic brands and an integrated portfolio, with 38% of sales volume from processed products with high value added”.
Together, companies still add consolidated net revenue of R $ 152 billion in the last 12 months.
The transaction provides for the incorporation of BRF shares by Marfrig into an exchange ratio of Marfrig’s 0.8521 action for each BRF action, which already considers the maximum distribution of earnings by companies being R $ 2.5 billion by Marfrig and R $ 3.52 billion by BRF.
With the conclusion of the incorporation of actions, BRF will become an integral Marfrig subsidiary. The incorporation will be counterparted to the delivery to BRF shareholders (except Marfrig) of common issuance actions of Marfrig.
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“The fusion between Marfrig and BRF is a necessary movement so that we can advance with strategic synergies and continue to grow our business around the world. Today, with MBRF, we have started a new chapter of our history and we are paving a promising future,” Marcos Molina, controller and president of the advice councils of Marfrig and BRF, said in a statement.
The companies have reported that they have extracted as many synergies as far as the next stage of additional captures, the business combination is essential.
“The knowledge between Marfrig and BRF allows a clear view of existing opportunities and mitigating the risk of execution,” they pointed out, noting that the synergies already mapped were grouped and total R $ 805 million per year, being between R $ 400 and R $ 500 million for the first 12 months and the rest in the medium and long term.
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In front of revenues and costs, through cross-selling initiatives and supply chain synergies, they should reach R $ 485 million per year. It is estimated a reduction in expenses of R $ 320 million annually, with initiatives such as the unification of commercial structure and logistics, consolidation of a single operating system and optimization of the corporate structure.
