BRAZIL – Brazilian meat giant Marfrig’s sale of its processing facilities to local competitor Minerva has received final approval from the Brazilian Administrative Council for Economic Defense (CADE).
However, the regulator’s approval comes with conditions that require Minerva to sell off a specific plant to complete the transaction.
According to CADE’s ruling, Minerva must divest a processing plant in Pirenópolis, Goiás, as a condition for the acquisition to proceed.
This stipulation was necessary for the approval of the 7.5 billion reais (US$1.3 billion) deal, which was initially announced in 2023.
The sale includes portions of Marfrig’s beef and lamb processing operations.
Last month, CADE had provisionally cleared the deal, but the final approval was granted on the condition that Minerva addresses competition concerns.
Specifically, CADE pointed out issues with the removal of an expansion limit at Marfrig’s Várzea Grande facility in Mato Grosso, in addition to the required sale of the Pirenópolis plant.
The transaction will see Minerva acquire 11 Marfrig cattle slaughter and processing plants located in several Brazilian states: Rio Grande do Sul, Mato Grosso, Mato Grosso do Sul, Pará, Goiás, Rondônia, and São Paulo. Minerva will also gain one processing plant in Argentina and another in Chile.
A proposal to include Marfrig’s Uruguayan assets was blocked by Uruguay’s competition regulator in May.
Both Marfrig and Minerva acknowledged the decision in separate statements issued to the stock exchange.
Marfrig expressed expectations that the plant sale and finalization of the deal would be completed by the end of the upcoming month.
Minerva Foods, founded in 1924 and based in Barretos, São Paulo, is a key player in Brazil’s food sector, specializing in fresh beef, leather, by-products, and live cattle exports, as well as meat processing.
Marfrig S.A., headquartered in São Paulo, stands as Brazil’s second-largest food processor after JBS.
The company operates 33 production plants worldwide, has a presence in 22 countries, and exports to more than 100 markets globally.
Initially, the deal was set to include 11 processing plants and a distribution center in Brazil, alongside operations in Uruguay, Argentina, and Chile, but it has since been adjusted following regulatory challenges.
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