SAO PAULO, Aug 6 (Reuters) - SALIC International

Investment Company, a wholly-owned subsidiary of Saudi

Agricultural and Livestock Investment Company, told Brazilian

competition authorities on Wednesday it is a passive minority

shareholder in rival food producers BRF and Minerva

.

SIIC, which owns 11.03% of BRF and 24.49% of Minerva, said

"it does not hold any political rights that would allow it to

interfere with or influence the independence and normal course

of business and management of BRF and Minerva."

The Saudi investor's clarification comes after a formal

information request made by Brazil's antitrust watchdog CADE

regarding the proposed takeover of BRF by Marfrig.

The deal was approved by the minority shareholders of both

companies on Tuesday. The Saudi investor abstained from voting

and did not participate in the merger discussions of BRF and

Marfrig, according to CADE's disclosures.

Separately, CADE cleared the proposed transaction in early

June. But CADE's nod was later challenged by Minerva, which

asked it to scrutinize the deal more closely.

Minerva claimed the merger would involve the transfer of

BRF's current shareholders, including SALIC, to Marfrig's

shareholding structure through a share swap. Minerva said if the

transaction went ahead, the Saudi investor would gain influence

over the business decisions of three competitors: Minerva,

Marfrig, and BRF.

BRF and Marfrig did not comment.

CADE responded to Minerva by agreeing with a more prolonged

merger review, according to a public decision on Monday.

"The alleged facts, if proven, may indicate a possible

alignment of interests and exchange of sensitive information

between ... competitors," CADE's president wrote. That

decision must be confirmed by a virtual CADE panel on August 11.

By law, CADE has a 240-day deadline to investigate complex

mergers, extendable by 90 days.

If approved, Marfrig and BRF will create another global

Brazilian food processor, with factories across the Americas,

the Middle East and Asia.