The Minerva transaction involves the acquisition of facilities in Brazil, Argentina, and Chile from meat industry peer Marfrig.
Minerva Foods and Brazilian meat peer Marfrig Global Foods have both confirmed that an asset deal between the two companies has been approved by regulators.
Nearly a year after the 7.5bn reais ($1.3bn) plant transaction was announced, in which Minerva was to acquire a number of factories and facilities from Marfrig across four South American countries, Brazil’s competition authority has granted conditional approval to a scaled-down version of the deal.
Originally revealed last August, the deal included 11 plants and a distribution centre in Brazil, three plants in Uruguay, a facility in Argentina, and a factory in Chile. However, the Uruguay portion was blocked by the country’s anti-trust regulator in May.
The remainder of the transaction – covering Brazil, Argentina, and Chile – was cleared by the Brazilian Administrative Council for Economic Defence (CADE) on 9th August, the companies said in separate statements.
Marfrig explained that CADE has recommended the “approval of the transaction through the execution of a concentration control agreement, which requires a reduction in the material and geographic limits established in the expansion restriction clause set in the agreement, which will not alter the other terms and conditions set forth in the agreement and the transaction.”
Minerva added that the merger control agreement (ACC) “provides for the reduction of material and geographic limits established in the non-compete clause of the share purchase and sale agreement and other covenants signed between the company and the seller.”
Food Future has requested both companies to confirm what the reductions entail and to clarify what other approvals – noted in each of the statements – are now required to finalise the deal.
“In addition to the final and unappealable decision of CADE, the closing of the transaction is also subject to the verification of the other conditions precedent provided for in the agreement, which regulates the acquisition of assets in Brazil, Argentina, and Chile,” Minerva stated.
