Saudi Investor Sells BRF Shares Before $2.6 Billion Meat Deal

A Saudi Arabian investorhas sold an 11% stake in BRF SA, a move that helps remove a hurdle for the Brazilian chicken producer’s $2.6 billion merger with beef giant Marfrig Global Foods SA.

Salic International Investment Co. entered into an agreement with Citigroup Inc. to swap its shares into derivatives, according to a regulatory filing late Tuesday. While the transaction eliminates its direct stake in BRF before the merger, the Saudi investor still will have an economic interest in the company through the derivatives.

BRF shareholders approved the Marfrig takeover last month, but Brazil’s antitrust regulator delayed ...