The Uruguayan competition defense authority has decided to reject the continuation of the sale of three MBRF factories for the company, as reported by Minerva (BEEF3) on Thursday (25). This information comes from Reuters, via Investing.com.
The factories in San José, Salto, and Colonia were assessed at R$675 million as stated in the market report.
Minerva did not discuss the emergence of the new Uruguayan negative. When contacted by Reuters, the company stated that it would not provide any further comments beyond what was revealed in the document to the market.
Marfrig (MRFG3) and Minerva (BEEF3) reach a final sales agreement.
The sale agreement between Marfrig (MRFG3) and Minerva (BEEF3) for units in Uruguay of the future MBRF ended on Friday (29), after being announced two years ago. The contract was terminated due to failure to meet the necessary conditions.
The deal signed in August 2023 finalized the transfer of cattle and sheep processing facilities to Athn Foods, under Minerva’s control, as reported by Seu Cash. Marfrig stated that the three facilities are still in operation following the contract’s completion.
Minerva appears to have not taken the conclusion positively, as indicated in a statement released to the market on Friday. The company acknowledged Marfrig’s assertion and confirmed that the contract is still valid.
The company stated that the progress of “Operation – Uruguay” is contingent upon approval from the local competition authority and remains committed to finalizing the agreement. Minerva filed a fresh authorization request with the Committee of Promoción y Defensa de la Competencia (Coprodec) in February 2025.
Comisión had indicated that it would not approve the purchase due to concerns that Minerva would control 43% of the bovine slaughter market, leading to a dominant position in the country.
Minerva and Marfrig argue that cattle prices in Uruguay are separate, while Coprodec disagrees, claiming that the new leader could impact the market.
Marfrig submitted a new request to the antitrust entity in February, stating that Minerva proposed an alternative to enable the operation based on Coprodec’s latest opinion regarding the initial decision.
The new plan suggested that Minerva would acquire the San José and Salto plants, with the condition that the Colonia plant be sold to the Allana Group right away, as stated by the company.
Marfrig stated that Minerva’s proposal to the Uruguayan competition authority would not alter the original conditions established with the refrigerator in Uruguay.
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