“The companies’ decision stems from the fact that the parties were unable to reach an agreement on the terms and conditions related to the governance that would govern the combined company, had the transaction occurred”, said BRF in a note signed by CEO Lorival Nogueira. “Despite the end of the negotiations, the commercial relationship between the Company and Marfrig will remain unchanged and that there will be no modifications to the practices, conditions and terms set forth in the existing agreements entered into by both parties.”

As reported by ILM, Marfrig and BRF announced at the end of May that they were discussing a possible merger, which would generate a company with annual revenues of about R$76 billion (US$16.18 billion).