The representatives of the Rural Federation presented to the Commission for the Promotion and Defense of Competition the alternatives to the possible purchase of Minerva to Marfrig which until this Monday had not been admitted for analysis.
On the other hand, they consider that we cannot run the risk of negative conditions materializing for the producers who are already in complicated situations. With this, they stated that they intend to put a stop to the purchase of the company Minerva to the refrigerator Marfrig, so they will be able to use all the tools they have at their disposal to achieve it.
In that sense, they assured that, if the purchase is finalized, the government should present alternatives for escape for the producers. A less conditioned or restricted export on foot is one of the examples of alternatives presented by the Rural Federation.
The legality of the transaction remains to be defined
In the coming days, Defense of Competition, a commission that depends on the Ministry of Economy and Finance (MEF)you will have to define legality of purchasing the plants Inaler, Cologne and The Caballada.
Hector Ferreira, study member Hughes & Hughes and specialist in commercial law, told Radio Carve that in the first instance “the relevant market” should be analyzed, which includes the task and buying and selling livestock.
Then, technicians must “review whether this concentration has the potential to obstruct, limit or restrict competition” and then analyze other elements such as “efficiency gains and what is always the final objective, which is the consumer.” In addition to total approval or rejection, the agency can enable the sale of one or two of the plants, as well as “condition” it.
The ARU warning
The president of the Rural Association of Uruguay (ARU), Patricio Cortabarría warned that the Brazilian company reached 47% of the task after purchasing the refrigerator Breeders & Packers Uruguay (BPU) and, if this operation is ratified, “the slaughter potential is greater and could reach more than 60% of the meat exported,” he expressed in dialogue with Channel 4, when whitewashing the sector’s concern.
By delving into that position, the head of the ARU argued: “When you let someone become so big, in short, what you are doing is leaving the dominant position to a group or a person with respect, not only to the producers, who are the sellers of those farms, but also to the rest of the industry, that it will be very difficult to compete with a giant within the market itself.”
Source: Ambito
