Minerva Foods and Marfrig Global Foods have received regulatory approval for an asset deal between the two companies. The deal, valued at 7.5bn reais ($1.3bn), was announced almost a year ago, with Minerva set to acquire several factories and facilities from Marfrig across four South American countries. However, the transaction faced a setback as the Uruguay portion was blocked by the country’s anti-trust regulator in May.
Despite this hurdle, the deal has now been cleared by the Brazilian Administrative Council for Economic Defense (CADE) for the remaining countries involved – Brazil, Argentina, and Chile. Both companies have confirmed that the approval comes with certain conditions, including a reduction in material and geographic limits as specified in the agreement.
Minerva and Marfrig are now working towards fulfilling the remaining conditions precedent to close the transaction successfully. This includes obtaining other necessary approvals outlined in the agreement. The agreement has drawn attention from competition authorities due to the global presence and market positions of both companies in the meat industry.
Marfrig, as the largest shareholder in Brazil-based poultry group BRF, has a significant presence in the industry, including ownership of US beef producer National Beef. Similarly, Minerva has expanded its portfolio through acquisitions such as Uruguayan peer Breeders and Packers Uruguay and Australian Lamb Company in joint ventures.
For more in-depth insights and analysis on company profiles, access the most comprehensive profiles on the market, powered by GlobalData. Gain a competitive edge and save valuable research hours. Visit the store to view profiles and stay informed about industry developments.
