Minerva Foods has submitted a revised proposal to Uruguay’s antitrust authority, La Comisión de Promoción y Defensa de la Competencia (Coprodec), in an effort to acquire three slaughterhouses owned by its rival, Marfrig Global Foods, Just Food reported.
This comes after the regulator rejected Minerva’s initial bid in May 2023.
Revised Strategy to Secure Approval
Minerva’s updated plan includes a key modification: the immediate divestment of one of the three facilities—the Colonia plant—after the transaction is finalized. The Indian-based Allana Group has been identified as the potential buyer of this plant, a move designed to alleviate concerns regarding market concentration and competition.
The three slaughterhouses in question are located in San José, Salto, and Colonia. While the revised proposal seeks to address regulatory concerns, there is no guarantee that Coprodec will approve the deal.
A Broader Acquisition Plan
Minerva has been pursuing the acquisition of Marfrig’s assets as part of a larger agreement that dates back to 2023. The deal originally encompassed 11 plants and a distribution center in Brazil, three plants in Uruguay, a facility in Argentina, and a factory in Chile. The total valuation of this transaction was set at 7.5 billion reais (approximately $1.3 billion). While regulatory approval for the Brazil, Argentina, and Chile portions was granted by the Brazilian Administrative Council for Economic Defense (CADE) in August 2023—contingent on Minerva divesting one Brazilian facility—the Uruguayan segment remains unresolved. The Uruguay portion of the deal was previously estimated at 675 million reais.
Uruguay’s Meat Industry Concerns
Despite the modification, skepticism remains among Uruguayan regulatory bodies and industry leaders. Conrado Ferber, president of the Instituto Nacional de Carnes (INAC), reiterated his opposition to the acquisition. Speaking to El Observador, Ferber argued that Minerva already has sufficient operational capacity and does not require additional plants to expand.
“There is no fundamental reason to approve this new proposal, even if it appears more balanced,” Ferber stated. “The company [Minerva] is operating with idle capacity and can grow without adding more plants.”
Ferber has been a vocal opponent of Minerva’s previous expansion attempts, including its purchase of the BPU slaughterhouse in Durazno and the earlier bid for the same three plants now under review. He also expressed concerns regarding the long-term viability of foreign investments in Uruguay’s meat sector, citing past failures in other industrial complexes, such as those in Rosario and Lorsinal.
Regulatory and Industry Reactions
Minerva’s latest bid has sparked reactions from various stakeholders, including agricultural organizations, meat industry unions, and officials from the Ministry of Livestock, Agriculture, and Fisheries. Critics argue that approving the acquisition could lead to excessive concentration of the slaughtering sector, potentially harming competition and impacting local producers and consumers.
With Coprodec previously rejecting the proposal and the Ministry of Economy and Finance upholding that decision, the review process for the revised bid is expected to be expedited. However, given the strong opposition from key industry figures and organizations, the likelihood of approval remains uncertain.
Looking Ahead
While Minerva hopes its revised strategy will satisfy regulatory concerns, the ultimate decision lies with Coprodec. Should the regulator once again deny the request, Minerva may need to explore further divestments or alternative strategies to gain market entry.
For now, Uruguay’s meat industry continues to closely monitor the unfolding situation, weighing the potential impacts on competition, economic stability, and the future of foreign investments in the sector.
