Minerva’s contradictory arguments to block the BRF-Marfrig merger, according to Brazilian media

While waging a battle before CADE citing Salic’s presence as a risk, the Vilela de Queiroz group used opposing arguments in Uruguay, according to Brazilian media The AgriBizz.

As it fights the merger between BRF and Marfrig before CADE in Brazil—arguing that Salic’s involvement poses a risk of anti-competitive practices—the Vilela de Queiroz group presented entirely contradictory arguments in Uruguay, The AgriBizz reported.

In one of the documents submitted last year to Uruguay’s Ministry of Economy and the Commission for the Promotion and Defense of Competition (Coprodec), Minerva’s lawyers argued that the simultaneous presence of Salic in the ownership structure of both BRF (controlled by Marfrig) and Minerva posed no risk of collusion.

In their own words, Minerva’s lawyers stated that “Salic has no control whatsoever over Minerva” and claimed that the Saudis “only hold a minority stake in BRF, thus it would be difficult for them to exert any significant influence.”

With the merger, Salic would remain a minority shareholder, retaining around 10% of MBRF. If the arguments used in Spanish (in Uruguay) were applied to the Portuguese-speaking context (Brazil), Minerva’s case to block the merger between Marfrig and BRF would weaken. Conversely, if the opposite reasoning were applied in Portuguese, the Vilela de Queiroz group would face greater difficulty before Uruguay’s antitrust body.

In Uruguay, Minerva is engaged in another battle: it is seeking government approval for the acquisition of three meatpacking plants owned by Marfrig, a deal negotiated nearly two years ago. The operation was initially vetoed in Uruguay on the grounds that Minerva would achieve excessive concentration in the country’s beef market. However, the company has submitted a second request for approval, proposing to sell one or even two of the plants (Colonia to Allana and Inaler) to secure authorization.

Sources close to Minerva argue that the contexts in both countries are different. In Uruguay, they claim, the response to critics of beef market concentration referred to the relationship between Vilela de Queiroz and BRF, which operate in different markets (beef on one side, poultry and pork on the other). In the Brazilian context, however, the creation of MBRF would mean Salic becomes a shareholder of two beef companies, a source said. The problem is that, under this logic, MBRF would also have beef operations in Uruguay. The AgriBizz attempted to contact Minerva but received no response.