Marfrig's takeover deal approved by EU

Brazilian meat processor Marfrig Alimentos received EU regulatory approval on Friday (Dec 18) for its takeover of local poultry export company Seara in a deal worth about US$900 million.

The European Commission said that even though the two companies had overlaps, the merged entity would continue to face several effective competitors with considerable market share.

"After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area or any substantial part of it," the EU executive said in a statement.

Marfrig is one of the world's largest producers of beef, with a strong presence in Europe. It produces a diversified range of products in Brazil and internationally, focusing on food products, in particular food derived from animal protein. It has plants in Brazil, Argentina, Uruguay, Chile and Europe.

Indebted Seara is owned by US agribusiness giant Cargill Inc and is one of the largest exporters of chicken cuts in Brazil.