The Brazilian company appealed the Coprodec resolution that rejected the purchase of three Marfrig refrigerators.
With the decision of the Commission for the Promotion and Defense of Competition (Coprodec) of the Ministry of Economy and Finance (MEF) of not authorizing the purchase of the three plants of Marfrig by Minerva due to the risk of high concentration in the refrigeration industry Despite what this entailed, the operation was not immediately truncated: the companies of Brazilian origin warned that they would seek other ways to arrange the merger that would give Minerva possession of at least 45% of the work in Uruguay.
However, Coprodec’s resolution at this stage is not final: the companies involved can challenge the administrative acts with a request for revocation within ten days of notification of the decision of the state agency, as established by law 15.869/87. And this is what Minerva did, it appealed, and the operation returned to the commission. Now the 150-day period elapses for the rejection of the merger of the refrigerators Brazilians be ratified or rectified.
The intervention of the Executive
What happens if the rejection is upheld? Then it goes to a second instance in which the appeal is presented to the Executive power. There, the stipulated period is 50 days: if the government accepts the commission’s argument as valid, everything will remain the same; but if it considers that it was incorrect, it has the power to revoke it and authorize the purchase operation without the application having to undergo another review.
The truth is that for the government it was a certain relief “technical” decision and not politics on a subject that concerned authorities and producers alike in the country. But with the aim of maintaining the credibility that distinguishes Uruguay In the face of investors around the world, if irregularities or erroneous issues are found in the Coprodec resolution, the Executive must take action on the matter.
In total, a period of 200 days is open for a final decision. Therefore, before the end of the year there should be a definitive resolution on the operation by which Minerva seeks to acquire the meat processing plants. Colony, Inaler and The Cavalryowned by Marfrig.
Source: Ambito
