Meatpacker optimistic about approval of plant sale to Minerva.
Marcos Molina, chairman of Brazilian meatpacker Marfrig, expects Uruguay’s antitrust authority to issue a decision between March and April regarding the sale of three of the company’s plants in the country to rival Minerva.
“We are still awaiting the proceeds from the sale of the assets in Uruguay, which should be finalized by the next quarter,”
Mr. Molina said during a conference call with analysts on Thursday (27), discussing Marfrig’s fourth-quarter 2024 earnings.
Mr. Molina expressed greater optimism about the potential approval of the deal following several rejections by Uruguay’s competition regulator, the Comisión de Promoción y Defensa de la Competencia (COPRODEC).
While awaiting the Uruguayan authorities’ decision, Mr. Molina emphasized that the plants in Uruguay continue to generate cash and contribute to the company’s EBITDA.
Minerva submitted a new request this month to COPRODEC to acquire Marfrig’s plants located in San José, Salto, and Colonia. In response to previous rejections from the agency, Minerva proposed reselling the Colonia plant to Allana Group, an Indian company specializing in the production and export of halal meat, to avoid market concentration in Uruguay.
Marfrig received R$5.68 billion from Minerva in the fourth quarter of 2024 for the sale of 13 other plants in Brazil, Argentina, and Chile. The proceeds boosted Marfrig’s net income for the period to R$2.58 billion, compared to R$12 million a year earlier.
Mr. Molina noted that both Marfrig and its subsidiary BRF ended 2024 “very well” and are starting 2025 in a similarly strong position.
“We are very calm and comfortable with the situation at both Marfrig and BRF,”
he said.
Source: Valor International
