Most of the amount refers to the agreed price for 13 industrial units and a distribution center located in Brazil, Argentina, and Chile.
Minerva Foods paid R$ 5.68 billion to Marfrig on Monday (10/28) as part of the ongoing asset purchase process for cattle and sheep in South America, according to announcements from both companies to the market.
Initially, the deal was closed for R$ 7.5 billion, with Minerva having paid R$ 1.5 billion at the time of the contract signing in August of last year. The remaining balance is subject to post-closing adjustment mechanisms outlined in the contract.
Minerva detailed that, of the amount paid today, R$ 5.325 billion pertains to the agreed price for the 13 industrial units and the distribution center located in Brazil, Argentina, and Chile. They also noted that R$ 264.92 million relates to the correction of this price based on the CDI (Interbank Deposit Certificate). Additionally, R$ 90.68 million is tied to other price adjustments stipulated in the contract, which are subject to confirmation within the next 90 days.
Marfrig emphasized in a relevant announcement that on May 21, 2024, it received a resolution from the Uruguayan Commission for the Promotion and Defense of Competition (CPDC) denying authorization for the transfer of assets located in the country.
The Uruguayan units in question are cattle slaughterhouses in Colônia, Salto, and San José, with a transfer price of R$ 675 million, which is held in an escrow account. “It is important to highlight that the decision is not final and remains subject to appeal,” stated Marfrig.
How It Stands
With this negotiation, Minerva now operates 46 industrial units across seven countries: Brazil, Paraguay, Argentina, Uruguay, Colombia, Chile, and Australia. The total cattle slaughter capacity increased to 41,789 heads per day, while the capacity for sheep is now 25,716 heads per day.
“Minerva also clarifies that it took over operations of the new plants as of today, and according to the integration schedule, the planned date for the first slaughter of the incorporated assets is November 4, 2024.”
The company highlighted that it will convene a general assembly to ratify the operation by its shareholders.
“Shareholders VDQ Holdings S.A. and SALIC International Investment Company, parties to a shareholders agreement filed at the company headquarters, have committed to voting favorably on the matters at the general assembly,” Minerva stated.
Marfrig, for its part, has focused on value-added products. The company reiterated in its statement that it holds control of BRF and National Beef in the United States, and continues to operate in the cattle and processed segments in Brazil with its Pampeano industrial plant.
There are also industrial complexes for slaughter and processing of branded and value-added products in Várzea Grande (MT) and Promissão (SP), as well as a hamburger factory in Bataguassu (MS).
In Argentina, Marfrig continues to operate its industrial complex in San Jorge, which produces the brands Quickfood, Paty, and Vienissima!, along with the Campo del Tesoro unit and the Baradero and Arroyo Seco units.
In Chile, Marfrig continues solely with its storage, distribution, and trading complexes.
