SAO PAULO – Brazilian meatpackers BRF SA (BRFS3.SA) and Marfrig Global Foods SA (MRFG3.SA) said on Thursday that they had mutually agreed to call off negotiations for a possible merger that were going on for a month.
The two companies said in securities filings they had ended the talks because they could not agree on the governance structure of the potentially merged company.
Two sources with knowledge of the matter said key shareholders, such as founding families of BRF SA, Fontana and Furlan, and pension funds such as Previ and Petros, were against the proposed merger, mainly due to the expected prominence of Marcos Molina, founder and Marfrig Chairman, in the management of the future company.
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