Uruguay Blocks Minerva Acquisition of Marfrig Assets

Uruguay Blocks Minerva Acquisition of Marfrig Assets
Photo: unsplash.com 27.05.2024 468

Country’s president says the deal could reduce competition in the meat sector.

Uruguay's antitrust regulator COPRODEC (La Comisión de Promoción y Defensa de la Competencia) said it had denied a request by Brazilian meatpacker Minerva to purchase three cattle slaughterhouses from rival Marfrig in the country.

In a filing, the COPRODEC regulating body indicated that the mitigation measures proposed by Minerva were not sufficient to prevent an anti-competitive impact on the Uruguayan beef market.

The deal is part of Marfrig’s 16 plants in South America that are in the process of being acquired by Minerva for R$7.5 billion. Of that total, R$1.5 billion was already paid when the agreement was closed, in August 2023. The sale of the units in Colônia, Salto, and San José (Uruguay) totaled R$675 million.

The companies learned of the decision on May 21. Minerva intends to appeal. 

“[The decision] is not final, it is subject to appeal at both administrative and judicial levels, which should occur in the coming days,” 

the company said.

Despite the decision announced in Uruguay, Marfrig and Minerva informed that other processes are under analysis by authorities in their respective countries.

“The decision [in Uruguay] does not affect the deal involving the acquisition of industrial and commercial businesses owned by the seller in Brazil, Argentina, and Chile,” 

Minerva informed. Marfrig also said the measure does not change the agreed terms and conditions.

Most of the plants included in the business are in Brazil, with 11 units being analyzed by the Administrative Council for Economic Defense (CADE). A final decision is expected to occur at the end of the year. The deal has been regarded as a “complex operation.”

Sources: Valor International, Just Food

food markets  Brazil 

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