SÃO PAULO — Brazil’s national competition regulator approved the proposed merger between major meat giants Marfrig Global Foods and BRF.

On June 3, the Administrative Council for Economic Defense (CADE) declared no risks to the proposed transaction.

“This decision marks a major milestone in the creation of MBRF, a company that is set to become one of the world’s largest food sector players, with net revenue of R$152 billion over the past 12 months, and 38% of its portfolio made up of high value-added processed products, including iconic brands like Sadia, Perdigão, Qualy and Bassi,” the companies said in a joint statement.

The companies first unveiled plans for a merger in May, noting that, if approved, the new business would be named MBRF Global Foods Co. S.A.

Within 15 days of the announcement the decision will become effective, provided CADE’s Tribunal does not object and no appeals are filed.

The next step of the process is the shareholders’ meetings for both companies, which are scheduled for June 18.

According to their material fact sheet, the combined business would increase revenue and reduce costs, estimated at R$485 million ($85.6 million) per year.

In the deal, BRF shareholders, except for Marfrig, would receive 0.8521 common shares of Marfrig for each common share of BRF on the transaction’s closing date. BRF would also become a wholly owned subsidiary of Marfrig.

Since 2021, Marfrig has been growing its shares in BRF. Initially, Marfrig purchased a 24.23% stake in BRF. By September 2023, it increased its stake to 40.05%. By 2024, the company had become the majority shareholder of BRF.