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the 5 keys to the brake by Coprodec

the 5 keys to the brake by Coprodec

The decision of the Promotion Commission and Defense of Competition (Coprodec), dependent on the Ministry of Economy and Finance (MEF), to stop the purchase of Minerva to Marfrig, was celebrated by several representatives of the agricultural and political sector of Uruguay, while the president Luis Lacalle Pou He assured that companies must adapt to the rules.

The decision was known unofficially and now both Minerva as Marfrig They have a period of 10 days to present their defenses, in advance of a ruling that would be known next week.

Lacalle Pou’s position

President Luis Lacalle Pou was consulted at a press conference this Saturday about the leak that the Promotion and Promotion Commission Defense of Competition (Coprodec) decided not to authorize the purchase of Minerva of three refrigerators Marfrig, after which he asked for caution.

“We will see what the report is,” he warned about the formalization of the decision, which would arrive in the coming days, while recalling that there are “some percentages” of production concentration that should not be exceeded, following the producers’ claim that the Brazilian company could reach 45% of the Uruguayan slaughter market.

Anyway, Lacalle Pou he lowered his tone against both Minerva and Marfrig. “Here it is not about going against a company or a sale, here it is about complying with the rules,” said the president and clarified: “They are two very good companies that have bet on the country, that have hired people and have have to adapt to the rules”.

The celebration of the chambers

The president of the Meat Sellers Union, Hebert Falero, assured that the association believes it is a correct decision. “To us it seems good and a correct measure. We had signed an appeal with other entities because it seemed to us that it is not good for a single company to manage more than half of the meat market. It is bad for us, for the public and for the producers because it can set the price of livestock and also the price of meat for sale to the public,” he explained to Telemundo.

“We have nothing against the company, but it is not good that there are very few suppliers for internal supply. They are dedicated to export and send whatever is left over to the domestic market. We have direct access to the refrigerators that are nationally owned and we buy directly, which is good for us. It is healthy that there are several suppliers,” he added.

For his part, a leader of the Chamber of Industries He also celebrated the decision. “If that merger had been made, the firm would have been stuck in a form with purchasing power and that would affect producers, especially small and medium-sized ones,” he said. Gabriel Murara, vice president of the Chamber of Industriesto Radio Montecarlo, although he stressed that he did so on an individual basis since the Chamber did not address that situation.

Minerva and Marfrig’s request for caution

After knowing the decision, both Minerva as Marfrig They issued separate statements to clarify that the decision of the Defense of Competition was not officially informed.

Minerva highlighted the commitment to “keep its shareholders and the market in general informed about any relevant act or fact related to the matter.”

Meanwhile, the CEO of Marfrig for Conosur, Marcelo Secco, He explained to Radio Carve that “there is still no formal resolution,” so he asked to wait “with caution” for the announcement, which would occur next week.

The ruling party, happy with the decision

The presidential candidate of National Party, Álvaro Delgado, He admitted that the operation was “concerning and occupying”, but highlighted the non-interference of the Executive. “It is not a decision of the MEF, but of the Coprodec. “The political is not above the legal,” he warned.

For Delgado “the legal security of Uruguay must be a treasure for investments” and appreciated the steps taken: “We hope that the process would take place, that the commission would rule and now the legislation itself establishes the mechanisms for discharge first and eventually for resources later.”

The senator expressed himself along the same lines Sebastian Da Silva, one of the first to warn about a possible concentration of the task by Minerva. The white legislator admitted his “satisfaction that in Uruguay the laws are complied with” and added: “The obvious was proven, that there was a large market concentration and half of the steers were going to be slaughtered by a single company.”

In any case, he clarified that both companies “have done large investments in the country and highlighted them as “healthy” firms that have development programs with producers and none of this is going to change.

The objections of the political arc of Uruguay

There were several political leaders who spoke out against the acquisition, one of them was Minister of Livestock, Agriculture and Fisheries, Fernando Mattos, who had raised his concern, despite the fact that he asked to “respect the rules”, alluding to the independence of the body dependent on the MEF.

From the Broad Front, the presidential candidate Yamandu Orsi He maintained that “despite the elections, this year the government has to make decisions and avoiding the concentration of the meat processing industry is one of them.”

“If the president decides to prevent it, I will not hesitate to support him,” said the former mayor of Canelones, obtaining the support of the former president. Jose Mujica. “It was very good to say it so that the president does not feel that we are going to destroy him if he comes out with a defense,” he said and highlighted: “You can disagree on many things, but sometimes you can also agree.”

Source: Ambito

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