BRFS: Merger approved - Full steam ahead

The BRFS merger was approved with concessions.

Overall, only 13% of the merged company will be impacted by the concessions.

Full steam ahead.

"BRASILIA, July 13 (Reuters) - Brazilian antitrust regulators gave their support on Wednesday to a deal that saves the merger that created processed foods company Brasil Foods.

Antitrust watchdog Cade endorsed a plan by which Brasil Foods SA (BRFS3.SA)(BRFS.N) will sell 80 percent of flagship brand Perdigao's production capacity and halts the sale of some of its products for between three and five years.

The agreement averts a forced breakup of Brasil Foods, the Sao Paulo-based processed foods giant spawned from the 2009 takeover of debt-ridden Sadia by smaller rival Perdigao. Cade had threatened to derail the merger, citing Brasil Foods' dominance in several markets."