The Brazilian company is evaluating the terms of the technical resolution, but that it “is not definitive and is subject to appeal.”
The Brazilian company Minerva reported that it is evaluating the terms of the negative resolution of the Commission for the Promotion and Defense of Competition (Coprodec) of the Ministry of Economy and Finance (MEF) regarding the planned merger with Marfrig, which involved the purchase of three of the four plants that the second has in Uruguay. For the company, the decision “is not final and is subject to appeal,” thus raising the possibility of appealing.
The decision of Coprodec to reject the merger operation between Minerva and Marfrig that would leave in the hands of the former a 45% share of the local slaughter market It was well received among producers and agricultural unions who campaigned strongly against said concentration and even within the government that, despite not being comfortable with the possible purchase of the refrigerators, had expressed that there would be no political position in the resolution of the technical body.
However, and as expected, the Brazilian company was not satisfied with the end—at least, provisional—of the operation announced nine months ago. In that sense, it issued a statement in which it reported that it is evaluating the terms of the Coprodec decisionwhich “is not definitive and is subject to appeal both at the administrative headquarters and in the Judicial process”.
Furthermore, he clarified that the previous decision is restricted to the “Operation – Uruguay” —that is, the purchase of the three Marfrig plants—, whose sale price of the assets located in the country is 675 million reais, approximately 132 million dollars. But he assured that he has no interference in the other operations at the South American level, which also includes the purchase of other Marfrig plants in Brazil, Argentina and Chili; thus bringing peace of mind to shareholders and the market.
Can investments in Uruguay be affected?
Despite the doubts that existed at some point in the Executive power how a possible refusal by Coprodec to Minerva-Marfrig merger could affect the arrival of new investments, The fact that the decision was totally technical—without political intervention—calmed the waters between the authorities.
In fact, the government believes that the resolution will not affect the arrival of investments as it will generate “confidence” in the Uruguayan slaughter market. And for the owner of the Ministry of Livestock, Agriculture and Fisheries (MGAP), Fernando Mattosthe ruling “gives guarantees” to the different sectors regarding price formation.
In this regard, Mattos admitted that “Uruguay goes out into the world to request that investments come” and considered that this decision by Coprodec will not affect that situation. “These companies that are involved in the business proposal are important companies that bet on the country and professionals who have done very well for the chain,” he admitted, but clarified that “when there is a concentrating effect that can affect the price formation“We have to respect the technical opinion.”
Far from talking about a possible complication, the leader said that the country “comes out stronger because there is a technical office that analyzes the issues with rigor and professionalism and gives the opinion,” emphasizing that “Uruguay is always on the side of generating trust and this is a factor that, far from being a rejection of the business of companies, generates confidence in all economic sectors.”
Source: Ambito
