Brazilian meat major Marfrig Global Foods has announced the termination of the deal to sell its Uruguay plants to local rival Minerva.
However, Minerva has contested Marfrig’s position in a separate filing, asserting the contract remains in “full force and effect”.
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The deal, initially agreed in 2023, was part of a broader transaction involving assets in Brazil, Argentina, and Chile.
The Uruguay segment of the deal was valued at 675m reais ($123.8m).
In a securities filing on Friday (29 August), Marfrig cited unmet conditions within a two-year deadline for the termination of the deal.
“The precedent conditions applicable to the Transaction were not satisfied by the Long Stop Date and, therefore, the Uruguay Agreement was automatically terminated, with the parties no longer being bound to complete the Transaction,” it said.
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By GlobalDataMinerva has vowed to continue seeking approval from Uruguay’s competition authorities to finalise the deal.
In May, Uruguay’s competition regulator, La Comisión de Promoción y Defensa de la Competencia (Coprodec), blocked Minerva’s bid to acquire the three Marfrig slaughterhouses, which are located in San José, Salto, and Colonia.
Minerva had submitted a revised proposal in February, offering to sell the Colonia site immediately after the transaction to address antitrust concerns.
The broader deal between Marfrig and Minerva, valued at 7.5bn reais, included 11 plants and a distribution centre in Brazil, three plants in Uruguay, one facility in Argentina, and a factory in Chile.
The Brazilian Administrative Council for Economic Defense (CADE) approved the Brazil, Argentina, and Chile components last August, with the condition that Minerva divest one Brazilian site post-transaction.
