Minerva Foods and Marfrig have refuted claims of a deal between the two meat groups being blocked by the Uruguayan competition watchdog. The purchase agreement, which involved Minerva acquiring cattle slaughtering and deboning plants from Marfrig, was reportedly halted by the La Comisión de Promoción y Defensa de la Competencia (CPDC) in Uruguay.
Both companies have stated that they have not received any official communication regarding the decision. In separate statements, Minerva and Marfrig reiterated their commitment to keeping shareholders and the market informed about any relevant developments.
Minerva’s initial agreement to acquire assets in Argentina, Brazil, Chile, and Uruguay for 7.5bn reais ($1.53bn) included the acquisition of three plants in Uruguay. According to reports, the CPDC’s decision to block the deal was based on concerns that it could negatively impact other beef processors.
The companies now have a brief period to present their defenses before a final ruling is made next week. The deal was seen as a strategic move to expand Minerva’s operations and enhance its competitive position in the global animal protein market.
Minerva CEO Fernando Queiroz expressed enthusiasm about the acquisition, highlighting its alignment with the company’s geographic diversification strategy and potential for growth in international markets. The move was expected to increase Minerva’s cattle slaughtering and deboning capacity significantly.
In conclusion, the situation highlights the complexities of competition regulations in the food and beverage industry and underscores the importance of compliance and transparency in business transactions.
