The Brazilian giant is seeking to reverse the initial rejection of the purchase of the four meat processing plants in Uruguay.
The legal representatives of the Brazilian giant Minerva Foods are adding arguments to their appeal against the resolution of the Commission for the Protection and Defense of Competition (Coprodec), after the initial refusal to purchase four refrigerators from the Brazilian company Marfrig in it Uruguay.
Both companies are now moving legally to reverse the rejection, despite the fact that the Coprodec resolved that “the impact assessment carried out is conclusive as to the fact that the proposed operation would result in the creation of a dominant position in which Minerva would concentrate 43% of the cattle slaughter of the country.”
Some unions in the sector that opposed the deal because they considered that it would “distort” the livestock market are participating in the appeal process. The head of the Rural Association of Uruguay (ARU), Patricio Cortabarriasaid that the union is currently preparing a response. “We are responding to the appeal,” said the leader.
Marcelo Seccoexecutive director of Marfrig in Uruguaysaid in recent days that “Minerva formally appealed” the decision of Coprodec, and that now it remains to know the decision of the Executive powerwhich has “until the end of November to ratify or not the resolution.”
The Minerva-Marfrig agreement received conditional approval in Brazil
The deadline for filing the defense is Tuesday, August 20, and the appeal must be resolved by Coprodec before the end of the year. In recent days, according to information from Conexión Agropecuaria, the agreement to purchase Minerva from its competitor Marfrig received conditional approval in Brazil by the Administrative Council for Economic Defense (CADE).
The approval came almost a year after the transaction between the two meat companies was announced, and the Brazilian institution approved a reduced version (with conditions) of the contract. The approval refers to the purchase of assets in Argentina and Chiliin addition to Brazil.
Source: Ambito
