President Luis Lacalle Pou admitted “concern” after the purchase of three of the four plants of Marfrig by Minerva, as confirmed by the interim Minister of Livestock, Agriculture and Fisheries, Juan Ignacio Buffa, commenting on the focus of the meeting called urgently by the president in Executive Tower.
At a press conference, buffa admitted that the operation can lead to “situations of lack of competitiveness”, although he clarified that the government will abide by what the Promotion and Defense of Competition, dependent on Ministry of Economy and Finance (MEF).
“The tone of the president’s call is one of concern,” said the interim head of the MGAP at the end of the meeting, pointing out that it is “an operation that has implications and an effect at an economic, social and productive level.”
buffa He pointed out that “it is up to the president to have first-hand all these evaluations and perspectives on the table” and indicated that “it is clear and notorious” that, in the event of the purchase being completed, “a concentration process will be deepened.”
Despite the concern, the government will abide by what Defense of Competition says
For the hierarch, “any phenomenon of concentration in a few hands of the demand for livestock is always complex and can lead to situations of lack of competitiveness and alternative for producers.”
However, he clarified that Competition Defense “It is absolutely independent” and ratified: “We are going to support the work of the commission and wait for the results”. The deadline for issuance is up to 60 business days.
Both the government and the opposition have their qualms.
From the government some leaders expressed their conflict with the acquisition of three plants of Marfrig by Minerva, since it would put him in a position to slaughter 1 out of every 2 cows, although most of them indicated that they will abide by what he says Defense of Competition, such cases of the head of the MEF, Azucena Arbeleche, and its pair of Work, Pablo Mieres.
For Wednesday, “There must always be a regulatory agency in any market that prevents phenomena that are not positive, such as the concentration of an activity in a few hands or in a single hand”.
In turn, the senator of the National Party, Sebastian da Silva, He pointed out: “We are not against the merger, we are very alarmed with the consequences of this merger that can be a monopoly in the refrigeration industry.”
Something similar happened from the opposition, with the former president Jose Mujica as the maximum exponent, describing it as “a danger” and expressed concern that the company with the greatest capacity to chore belong to foreign companies.
Source: Ambito
