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UPDATE 1-Brazil meatpackers BRF, Marfrig call off talks on proposed tie-up
BRASILIA, July 11 (Reuters) - Brazilian meatpackers BRF SA and Marfrig Global Foods SA said on Thursday that they had mutually agreed to call off negotiations for a possible merger.
The two companies said in securities filings that they had ended the talks because they could not agree on the governance structure of the potentially merged company.
BRF and Marfrig announced in May that they were in talks for a possible merger that would have created one of the world's largest meat producers. BRF leads the world in chicken exports and is also active in pork, while Marfrig's global beef business is second to only JBS SA.
Reuters reported last month that while BRF's board voted to pursue the talks, the decision was not unanimous and the proposal met with resistance from some directors.
BRF shares fell after the talks were announced, with some investors and analysts questioning whether a combined company would generate much cost savings. (Reporting by Jake Spring; Editing by Sandra Maler)
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