The proposed acquisition of Brazil-based dairy company Itambé Alimentos by French peer Lactalis is reportedly being referred to private arbitration proceedings.

Quoting documents from a Brazil appeals court, Reuters reports the deal will go before the Brazil-Canada Chamber of Commerce to decide if the purchase contravenes a former shareholders agreement in Itambé, Brazil’s largest dairy exporter.  

Until last September, Itambé was co-owned by the Cooperative Central dos Produtores Rurais de Minas Gerais (CCPR) and Brazilian dairy business Vigor Alimentos. However, that month, Vigor was sold to Mexico’s Grupo Lala and CCPR exercised an option to buy its co-investor’s shares in Itambé. Lactalis’ purchase was then to be conducted through CCPR.

Lala alleges the negotiations broke that shareholders agreement in Itambé.

In December, a Brazilian court was said to have issued an injunction suspending the sale of Itambé  to Lactalis. At the time, Reuters reported the injunction followed a motion by Vigor questioning the deal between CCPR and Lactalis. The news agency had previously said the proposed acquisition could be valued at around US$600m. 
 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData