BRF and Marfrig didn’t manage to find agreeable terms over what would have become the merged-company’s governance structure. The merger talks between the two players active in the meat industry broke down and it was decided to suspend further negotiations.
The partners’ opposition
BRF and Marfrig started discussing the possibility last June. According to reliable sources – reported by Reuters – the operation was allegedly discouraged by the opposition of certain key stockholders, such as the Fontana and Furlan families that founded BRF and the pension funds Previ and Petros.
The alleged opposition position was caused mainly due to concerns over the role of Marcos Molina (current president and founder of Marfrig) inside the new company that would have formed. The concern of stakeholders had to do with Mr. Molina’s capacity to take up a prominent position of power in relation to them.