the brazilian Minerva confirmed this Wednesday the unrestricted purchase of the refrigerator BPU upon receiving authorization from the Commission for the Promotion and Defense of Competition of the Ministry of Economy and Finance (MEF).
“Minerva SA, leader in South America in the export of beef, informs its shareholders and the market in general, in continuity with the Essential Fact disclosed on January 31, 2023, that the Uruguayan competition authority issued unrestricted approval for the acquisition of Breeders and Packers Uruguay SA (“BPU Meat”), a subsidiary of NH Foods Group (“NH Foods”)”, begins the statement released by the company.
“This is one more initiative by Minerva Foods in line with its strategy to expand the geographic diversificationwith the aim of mitigating risks and maximizing opportunities in the world animal protein market, always respecting our commitment to financial disciplinethe sustainability and the creation of value for shareholders”, he continues.
The decision of the Defense of Competition had taken longer than initially expected and had generated discomfort among local producers because they were not called to give their opinion in a process that affects the distribution of the slaughter market in Uruguay.
The measure was corrected by the MEF in June and consulted the Chamber of the Refrigeration Industry, Association of the Refrigeration Industry of Uruguay, Livestock Shippers Association Yet the Union of Meat Sellers of Uruguayin addition to INAC and the Ministry of Livestock, Agriculture and Fisheries (MGAP). These last two state agencies expressed their concern about the concentration of the sector in foreign hands.
Minerva announced the purchase of BPU at the end of January. The operation will add to the company Brazil a daily slaughter capacity of 3,700 heads. Thus, the Brazilian firm will keep 24.6% of the market in Uruguaysince it also has three other refrigeration plants: PULL, carrasco and cannelloni.
With the confirmation of the purchase of the BPU, most of the national work remains in the hands of two multinationals originating in Brazil: Minerva Foods and Marfrig which, together, own 51% of the bovine slaughter market in Uruguay.
“There are American indicators that show that with this business we would get out of a comfort situation in terms of competence” due to the monopoly scenario with greater power of foreign business groups, had alerted in mid-May the vice president of INAC, Guido Machado.
According to the INAC, there are around 45,000 producers that generate the meat that is industrialized and marketed through the national refrigeration industry and that their ability to compete would be affected.
Source: Ambito
