He National Meat Institute (INAC) met with the Commission for the Promotion and Defense of Competition (Coprodec) with the objective of giving their opinion regarding the purchase operation of three of the four plants that Marfrig It has in Uruguay by Minerva. The general message was that the “cons” prevail over the “pros” of allowing the business that will leave 45% of the refrigeration industry in the hands of the Brazilian company; and that “not everything is worth it Uruguay”.
For Coprodec to make a final decision, it is missing. Although the legal period of 60 days has already expired, the new stage of analysis and meetings that was opened due to the significant rejection by the organizations and unions related to the productive sector and, particularly, the country’s meat processing sector, may have its closure in at least 90 more days. Either to condition the business or to fully authorize it.
In this new chapter, the INAC met with the agency dependent on the Ministry of Economy and Finance (MEF), and took the opportunity to provide information that supports the institute’s position, already publicly negative to the merger between both Brazilian multinationals. The main argument is that the operation would affect investments and distort the meat market in Uruguay, a vision shared by agricultural unions and even a sector of the National Party linked to agriculture —and led by the white candidate Alvaro Delgado.
A limit on investment
The president of INAC, Conrado Ferber, He once again referred to the institute’s position in this framework, as he did on a few previous occasions. In that sense, in dialogue with Radio Carve, he insisted that none of the three Marfrig plants should be acquired by Minerva Foods.
“We do not want to make public what our fears are, our objections, but we clearly have a technical support That is enough for us. Obviously there are also technical reasons to allow the merger. “There are a number of pros and cons,” he expressed, but assured that the negative arguments are “much greater than the pros.”
Likewise, he once again maintained that the operation “does not contribute to a market that in our country is quite clear and balanced, it is not perfect, but we understand that this would be absolutely distorting.” For Ferber and the INAC, the approval of the merger “is a risk in the main business of the country.”
Regarding the investment —an aspect that was brought into the debate by government officials such as the minister of Livestock, Agriculture and Fishing (MGAP), Fernando Mattos—, the president of the National Meat Institute pointed out that “everything has a limit.” Yes ok Uruguay It is a country open to investment, “not everything is worth it.”
“In this case we would be taking a step that goes beyond the national interests and that is why we oppose it. I reiterate, for us these are two top-level companies, we do not need to qualify them, but a disproportion would be generated in the participation of one of them that will affect other investors, because all small industries are also investors; Just because they are national investors does not mean that we do not have to take care of them in the same way that we take care of international ones,” he stated.
In any case, Ferber clarified that, after the INAC meeting at Coprodec, he observed “a team of people who are really interested in doing a good job and who are aware of the historical responsibility they have.”
Source: Ambito
