(iStock.com/Dragos Cojocari)
After a soap opera that lasted more than a year, the Administrative Council for Economic Defense (CADE) the R$7.5 billion agreement between Minerva (BEEF3) e Marfrig (MRFG3) involving the sale of 16 plants and a distribution center, signed in August 2023.
There are 11 beef plants in Brazil, an industrial unit in Argentina and another three in Uruguay, in addition to a lamb plant in Chile and a Distribution Center in Brazil.
However, Cade imposed restrictions on the sale of a plant in Goiás due to concerns that the operation would generate “excessive concentration” in the state. As a result, the production plant in Pirenópolis (GO) will have to be sold by Minerva. Even if inactive, the reactivation of the slaughterhouse in question would generate a harmful concentration, according to the rapporteur.
Furthermore, Cade declared ineffective the clause that provided for a limit on the expansion of Marfrig's own slaughter and deboning capacity at the Várzea Grande plant in Mato Grosso, even though the company cannot open new plants in the state for five years.
According to the agency, the Goiás plant must comply with different rules, such as the sale of the plant by Minerva within six months of the final judgment of the concentration act at Cade, which can be extended for 6 months, according to the petition.
If the sale is not made within the period, the slaughterhouse must hold an open auction within 6 months and set a minimum price. If the auction is unsuccessful, the obligation will be deemed satisfied.
Minerva stated that the acquisitions of the plants, as well as the distribution unit, constitute strategic opportunities to complement the company's operations.
*With information from Broadcast