São Paulo (Reuters) -Most of the Councilors of the Court of the Administrative Council for Economic Defense (Cade) voted on Wednesday for the approval of the Marfrig Union Operation () with BRF (), but a decision of the agency was not proclaimed before a request for a view.
The formation of MBRF, a giant from the chicken, pig and cattle meat sectors, was announced in mid -May this year, and the operation foresees the incorporation of all BRF actions, owner of brands such as Sadia and Perdigão, by Marfig.
The request for a view was made by counselor Carlos Jacques Vieira Gomes, the penultimate to vote on Wednesday. Now, the case should return to the court of the municipality within 60 days for trial, said Cade.
Cade’s case rapporteur and chairman Gustavo Augusto de Lima was accompanied by most counselors about the approval without restrictions of the business that will create a company with revenue of $ 152 billion per year.
The transaction can also intensify the competition with the giant JBS, which has global acting and also sells the three important proteins, as well as processed foods.
The discussion of the Cade Court on Wednesday also dealt with the participation of the Saudi government company focused on agricultural investments, Salic, who is currently a minority shareholder at BRF, with 11.03%, and Marfrig’s rival, with 24.49%.
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The counselors understood that the eventual future participation of Salic in MBRF should be analyzed later, since the companies have not yet given further details about the position of the Saudi group in the combined company.
Thus, the understanding of most counselors was by conducting a new analysis of the eventual political power of Salic at MBRF after the completion of the company’s formation.
“If Salic is part of MBRF in the exchange of actions, Salic herself said it will notify the operation,” said counselor Victor Oliveira Fernandes, when reading his vote. “If that changes, it will give rise to a new notification” to Cade, he added.
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The rapporteur of the case mentioned that “the solution is simple: the operation is approved and it is stated that Salic’s rights (politicians) cannot be exercised until the (Cade) court declares itself on the subject.”
