INAC’s rejection of Minerva’s offer and the deadline that could derail the deal

The chances for Minerva’s new proposal to acquire three Marfrig plants in Uruguay (La Caballada, Colonia, and Inaler) and then divest two (Colonia to India’s Allana Group immediately and Inaler to a third party within 24 months) are starting to narrow.

World Beef Report (WBR) new that, in recent weeks, there have been exchanges between top officials from the National Meat Institute (INAC) and members of the Commission for the Promotion and Defense of Competition (Coprodec), a decentralized body under the Ministry of Economy and Finance (MEF). Both the president of INAC, Gastón Scayola, and its vice president, Leonardo Bove, hold positions against this new operation proposed by Minerva to expand its presence in Uruguay. Both officials were appointed by the executive branch under Yamandú Orsi Presidency, a key detail because beyond the technical decision made by Coprodec, the final word will rest with the executive branch (via the Ministry of Economy and Finance), which can ratify, modify, or reject the regulator’s ruling—meaning it will ultimately be a political decision.

This stance aligns with the public opposition already expressed by associations such as the Rural Association of Uruguay and the Rural Federation. The National Commission for Rural Development (CNFR) also considers it untimely for Minerva to add more plants, as it would give the company greater power to rotate which plants it can shut down. “It’s a very tangled business they’re proposing,” said a CNFR member.

A pressing deadline

Initially, Coprodec had set a deadline of July 15 for interested parties to submit their positions on Minerva’s new proposal to acquire three of Marfrig’s four plants in Uruguay. However, that deadline was later extended to July 21.

Following a six-month extension agreed upon last February, Marfrig and Minerva had set the end of August as the expiration date for keeping the negotiation open for the sale of the Uruguayan assets. According to WBR, currently, Marfrig is not inclined to authorize another extension. Official sources explained that there is a real possibility that Coprodec’s ruling will come after that date (end of August). Therefore, if the agreement between Minerva and Marfrig collapses, Coprodec’s decision —and any subsequent stance by the executive branch— would become meaningless.

Another new factor in the relationship between Marfrig and Minerva is the clash between the two companies in Brazil over Minerva’s opposition to the BRF-Marfrig merger.