Negotiation deadline for Marfrig–Minerva asset sale in Uruguay will not be extended

The deadline for negotiations between multinationals Marfrig and Minerva over the sale of three Uruguayan slaughterhouses expires at the end of today and will not be extended, making it increasingly unlikely that the transaction will be completed.

Tomorrow, according to information obtained by World Beef Report, both companies will issue separate statements to the market with their views on the end of these negotiations. The deadline expires before the Competition Defense Commission (Coprodec) issues a final ruling on the deal.

The agreed sale price for the Uruguayan assets was R$ 675 million (around US$ 125 million at the current exchange rate), subject to contractual adjustments.

Minerva’s latest proposal to Coprodec was to immediately divest Establecimientos Colonia, to be sold to the Indian group Allana, and to sell Inaler in San José within a maximum of 24 months. This would have left Minerva operating five plants in Uruguay, including La Caballada in Salto.

Relations between the two companies are strained after Minerva challenged the merger of Marfrig and BRF in Brazil to form MBRF, arguing that the new company would have access to sensitive market information as it shares a common shareholder with Minerva, the Saudi group Salic.