Argentinian confectionery and bakery group Arcor is to take a 25% stake in local dairy firm Mastellone Hermanos.
Arcor will initially invest US$60m. It has an option to increase its participation through another $35m before February 2017.
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Mastellone said it use the money to invest in three of its production sites: the industrial complexes in General Rodríguez, Trenque Lauquen and Villa Mercedes.
The Villa Mercedes last complex is still at an early stage of construction. The investment allows Mastellone to complete the project and begin processing liquid milk in order to supply its products to central and northern Argentina.
The operation is still pending authorisation from local competition officials.
Both companies refused to provide further comment to just-food on this matter. However, in a report to the market in November, Mastellone admitted to have been financially damaged by the economic uncertainty in Argentina and lower international prices of dairy products.
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By GlobalData
