Uruguay regulator blocks Minerva purchase of Marfrig plants
Mitigation measures to prevent anti-competition insufficient
23 May 2024
1 minute read
By: Uruguay's antitrust regulator said on Tuesday it had denied a request by Brazilian meatpacker Minerva to purchase three cattle slaughterhouses from rival Marfrig in the country, reported Reuters.
In a filing, the Coprodec regulating body indicated that the mitigation measures proposed by Minerva were not sufficient to prevent an anti-competitive impact on the Uruguayan beef market.
In a securities filing, Minerva said it intends to appeal the decision within the next days.
The proposed purchase of the assets in Uruguay are part of a broader deal announced in August, through which Minerva wants to buy a total of 16 slaughtering plants from Marfrig in South America for 7.5 billion reais ($1.46 billion).
In separate filings, both Minerva and Marfrig said the three plants in Uruguay were valued at 675 million reais, adding the regulator's decision has no effect on the plants Minerva plans to buy in other countries.
Uruguay's economy ministry, which the country's antitrust authority falls under, declined to comment further on the decision.
($1 = 5.1225 reais)
