Minerva Foods has submitted a revised proposal to Uruguay’s antitrust authority to acquire local slaughterhouses owned by meat rival Marfrig Global Foods.
Uruguay’s competition regulator, La Comisión de Promoción y Defensa de la Competencia (Coprodec), rejected Minerva’s bid to purchase three slaughterhouses from Marfrig in May. These facilities are located in San José, Salto, and Colonia.
In its revised approach, Minerva is again proposing to acquire the same three facilities. However, this time, it has committed to selling the Colonia site immediately following the transaction. This strategic move aims to secure approval from Coprodec.
Allana Group, a manufacturer specializing in halal meat and pet food, has been identified by Minerva as the prospective buyer for the Colonia facility, contingent on the transaction securing regulatory clearance.
Minerva seeks to acquire these Uruguayan assets as part of a broader strategic deal with Marfrig, which dates back to 2023. This original agreement included plants in Brazil, Chile, and Argentina.
Overall, the deal comprises 11 plants and a distribution center in Brazil, the three facilities in Uruguay, one site in Argentina, and an additional factory in Chile, with a total transaction value of 7.5 billion reais ($1.3 billion).
The transaction involving facilities in Brazil, Argentina, and Chile was cleared by the Brazilian Administrative Council for Economic Defense (CADE) last August. This clearance was conditional upon Minerva selling one of the Brazilian sites following the transaction.
Moreover, the value of the Uruguayan portion has been estimated at 675 million reais.
In a statement released today, Marfrig acknowledged Minerva’s revised bid. “It is important to highlight that the proposal submitted by Minerva to the Uruguayan competition authority will not result in any changes to the conditions originally agreed upon with Minerva for operation Uruguay, namely, the sale of all three units (San José, Salto, and Colonia) under the exact terms and conditions set forth in the purchase and sale agreement executed on August 28, 2023,” Marfrig stated.
“Minerva’s alternative proposal will be a completely separate legal transaction from the operation Uruguay, to be agreed upon exclusively by Minerva, without any participation or involvement from Marfrig.”
