The president of Brazil appointed four leaders to advance the regional operation, which raises doubts in the national livestock sector.
He President of Brazil, Lula Da Silva, took a step to accelerate the purchase of Minerva to Marfrig, an operation between Brazilian companies that will take place at the regional level and was announced months ago and that in Uruguay implies that the firm acquires three of the four plants of its competitor, which motivated many sectors to warn about the possibility of concentration in the market for task
Specifically, Lula appointed four new advisors to the Administrative Council of Economic Defense (Cade), positions that had not been renewed after the end of his mandate, so that this body can now analyze the transaction at a global level, by which Minerva could reach more than 60% of the meat exported from Uruguay.
The leaders named in the Brazilian entity are José Levi Mello do Amaral Júnior, Camila Cabral Pires Alves, Diogo Thomson de Andrade and Carlos Jacques Vieira Gomes, who will now analyze the operation, although in any case it must be approved by the Parliament from that country, as reported by Blasina y Asociados.
The purchase of Minerva from Marfrig could materialize in mid-2024
When referring to the million-dollar transaction, the Marfrig CEO, Marcos Molina, expressed its expectations that the final agreement between the Brazilian companies will be finalized by the end of the second quarter of next year.
In his forecast, Molina referred to the acquisition of the participation of Marfrig in BRF, which he said took between eight and nine months.
How does the operation affect the Uruguayan productive sector?
The operation Minerva-Marfrig is being analyzed in the country by the Commission for the Promotion and Defense of Competition, which depends on Ministry of Economy and Finance (MEF), which will define the legality of a transaction that has the livestock sector in suspense.
From the Rural Association of Uruguay (ARU), its president Patricio Cortabarría remembered that Minerva reached 47% of the task after purchasing the refrigerator BPU and with this purchase “the slaughter potential is greater and could have more than 60% of the meat exported”.
There were also voices from politics and the ruling party against the operation, such is the case of the senator from Open Town Hall, Guillermo Domenech, who warned that “an oligopoly could be generated”, something that he explained was “not favorable” for “the flagship of the Uruguay”, just as he described the market as work.
However, since Minerva They indicated in a statement that this type of operations are essential to “maximize the competitiveness” of the Brazilian firm at the international level.
Source: Ambito
