BRF Marfrig Merger in Brazil Moves Forward After Shareholders Approval Despite Tariff Challenges

The $35B deal unites Brazil’s top meat producers into a multiprotein powerhouse, tested early by U.S. tariff headwinds.

The BRF Marfrig merger took a decisive step forward last week after receiving overwhelming support from BRF’s shareholders, paving the way for one of the largest corporate combinations in Brazil’s food sector. On August 3, 2025, 71.4% of BRF’s minority shareholders voted in favor of the transaction, with an exceptionally high 90% participation rate among free float investors. The decision was ratified at BRF’s August 5 general meeting, leaving only Marfrig’s shareholder approval and final regulatory clearance before the deal can close.

Announced on May 15, 2025, the BRF Marfrig merger will unite poultry, beef, and pork operations under the new name MBRF. The combined company is projected to generate more than $35 billion in annual revenue, hold roughly 25% of Brazil’s domestic meat market, and significantly expand its presence in key export markets. The original agreement set out a share-swap structure and positioned the new entity as one of the world’s largest multiprotein companies.

Global Market Context: Tariff Headwinds

The latest shareholder approvals of the BRF Marfrig merger come at a time of heightened trade tension. On August 6, the United States imposed 50% tariffs on a range of Brazilian exports, including beef. The poultry segment—where BRF has a strong position—remains exempt, helping shield part of the merged company’s business.

This tariff pressure underscores the strategic importance of MBRF’s diversified portfolio. Poultry sales can help offset the expected decline in U.S. beef shipments, while the group’s established channels in Asia, the Middle East, and South America—particularly China—offer alternative growth opportunities.

Strategic Rationale in the BRF Marfrig merger

From the outset, the business case for the BRF Marfrig merger has been rooted in scale, diversification, and efficiency gains. By combining BRF’s poultry leadership with Marfrig’s beef dominance and a growing pork business, the new entity will have greater bargaining power with suppliers, enhanced access to global distribution channels, and a more agile production network.

Operational integration is expected to generate about $500 million in annual synergies through streamlined procurement, logistics, and research and development. The merger also strengthens the company’s ability to expand into higher-value product categories and new geographic markets. Management has hinted at a potential U.S. listing in the future, which could broaden investor access and liquidity.

The Firms Behind the Deal

For Marfrig

Linklaters acted as international counsel, led by Matthew Poulter in São Paulo, with support from Antonia Sherman, Jeffrey Cohen, Pierre-Emmanuel Perais, Gabriel Grossman, Jonathan Gafni, Shruti Chopra, and other lawyers based in New York, Washington D.C., London, and Brussels.

TozziniFreire Advogados, Brazil’s traditional law firm, advised on Brazilian law, with partners Carlos Barbosa Mello and Mirella Mie Abe.

Lefosse Advogados also assisted Marfrig, led by partner Leonardo Batista alongside Leonardo Gaspar, Luisa Nordskog, Lara Maroni, and Marco Mariutti.

For BRF (Target)

Simpson Thacher & Bartlett LLP represented BRF, with partner Grenfel S. Calheiros and associate Siddharth Fresa leading the team.

Eizirik Advogados acted as Brazilian counsel to BRF, with Marcus de Freitas Henrique and Juliana Botini.

Independent Committee & Financial Advisory

Citigroup served as financial advisor to BRF’s independent committee and provided the fairness opinion through Citigroup Global Markets Inc.

Davis Polk & Wardwell LLP acted as international counsel to Citi, while Cescon, Barrieu Advogados served as Brazilian counsel, with Lior Pinsky and Gabriela Callari on the deal team.

The Takeaway in the BRF Marfrig Merger

With shareholder approval secured, the BRF Marfrig merger is now in its final stretch toward completion. First announced in May 2025, the $35 billion deal will create a global protein powerhouse equipped to navigate the challenges of shifting trade policies and capitalize on diversified export markets. Its success will depend on how effectively MBRF integrates operations, responds to tariff pressures, and leverages its scale to drive growth.