Brazil's Minerva to Acquire Assets from Marfig for $1.5 Billion

Brazil's Minerva to Acquire Assets from Marfig for $1.5 Billion
Photo: 12.09.2023 161

The agreement to acquire 16 plants in Brazil, Argentina, Uruguay and Chile will boost Minerva’s cattle slaughtering capacity by 44%.

Brazil's Minerva Foods, one of the largest meat suppliers in South America, has agreed with rival Marfrig Global Foods to acquire 16 slaughtering plants and a distribution center for 7.5 billion Brazilian reais ($1.54 billion).

Of the acquired infrastructure facilities, 11 are located in Brazil (10 slaughterhouses and a distribution center), three in Uruguay and one each in Argentina and Chile.

After the acquisition, Minerva will have 40 beef cattle slaughter and deboning plants: 21 units in Brazil, five in Paraguay, six in Argentina, six in Uruguay, and two in Colombia. Its lamb business will have five plants – four plants in Australia and the new site in Chile.

The deal will also allow Minerva to increase its processing capacity by nearly 44% — to 42,439,000 head of cattle per day from the current 29,540,000 — and strengthen the company's leadership in the Latin American beef market, Minerva said in a press release.

Under the agreement, the new owner will pay Marfrig Global Foods R$1.5 billion upon signing the contract and another R$6 billion upon completion of the deal.

Marfrig, in turn, will focus the operations of the remaining owned businesses on higher value-added products, the company said.

Sources:  Interfax, Just Food

food markets  Brazil 

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