Marfrig, Minerva Disagree On Status Of Uruguay Deal

Smartphone pinch logo of Brazilian nutrient institution Marfrig Global Foods S.A. Credit: T. Schneider/Shutterstock.com.

Brazilian nutrient awesome Marfrig Global Foods has announced nan termination of nan woody to waste its Uruguay plants to section rival Minerva.

However, Minerva has contested Marfrig’s position successful a abstracted filing, asserting nan statement remains successful “full unit and effect”.

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The deal, initially agreed successful 2023, was portion of a broader transaction involving assets successful Brazil, Argentina, and Chile.

The Uruguay conception of nan woody was weighted astatine 675m reais ($123.8m).

In a securities filing connected Friday (29 August), Marfrig cited unmet conditions wrong a two-year deadline for nan termination of nan deal.

“The precedent conditions applicable to nan Transaction were not satisfied by nan Long Stop Date and, therefore, nan Uruguay Agreement was automatically terminated, pinch nan parties nary longer being bound to complete nan Transaction,” it said.

Minerva has vowed to proceed seeking support from Uruguay’s title authorities to finalise nan deal.

In May, Uruguay’s title regulator, La Comisión de Promoción y Defensa de la Competencia (Coprodec), blocked Minerva’s bid to get nan 3 Marfrig slaughterhouses, which are located successful San José, Salto, and Colonia.

Minerva had submitted a revised proposal successful February, offering to waste nan Colonia tract instantly aft nan transaction to reside antitrust concerns.

The broader woody betwixt Marfrig and Minerva, weighted astatine 7.5bn reais, included 11 plants and a distribution centre successful Brazil, 3 plants successful Uruguay, 1 installation successful Argentina, and a mill successful Chile.

The Brazilian Administrative Council for Economic Defense (CADE) approved nan Brazil, Argentina, and Chile components past August, pinch nan information that Minerva divest 1 Brazilian tract post-transaction.