Brazil's Marfrig, Minerva unaware of decision blocking deal in Uruguay (updated)

BRF SA

17/05/2024 17:10

(Adds Santander and Goldman Sachs analyst comments, share
moves)
    By Ana Mano
       SAO PAULO, May 17 (Reuters) - Brazilian meatpacker
Marfrig  MRFG3.SA  said on Friday that it has not been notified
of a decision reported in the media that  its deal to sell some
plants to rival Minerva  BEEF3.SA  has been blocked by Uruguayan
antitrust authorities.
    Buyer Minerva issued a nearly identical statement on the
matter. Uruguay's economy ministry told Reuters on Friday the
country's antitrust authority has not made an official decision
and was not commenting at this time. 
    Marfrig agreed in August to sell 16 slaughtering plants to
Minerva for 7.5 billion reais ($1.47 billion), in a deal that
would significantly change its profile in South America.
    The sale of assets is split into two separate transactions,
including a price tag of 1.5 billion reais for the plants in
Uruguay and 6 billion reais for those in the other countries, 
Santander analysts said. 
    "Even if the deal in Uruguay is not approved, we expect no
impact on similar transactions in Argentina, Brazil, and Chile,"
Santander wrote, adding that conclusion of the whole transaction
is conditioned on approval in Brazil.
    The units being divested are located in Chile, Brazil,
Argentina and Uruguay. Most process cattle while one in Chile
slaughters lambs. 
    If the deal goes through as proposed by the firms, Marfrig
would retain only its larger-scale industrial facilities in
South America in a bid to prioritize production of processed
meat products. Minerva would continue to focus on beef. 
    Goldman Sachs said three of the 16 plants targeted by
Minerva are based in Uruguay, accounting for 16% of the total
beef slaughtering capacity it is seeking to acquire.
    Goldman said it expected a negative share reaction for the
buyer but told clients it needs more information to gauge the
full impact of the deal potentially falling through in Uruguay.
    Marfrig also controls Brazil-based poultry and pork
processor BRF  BRFS3.SA , and National Beef  NBEEF.UL  in the
United States.
    Shares in Marfrig rose as much as 3.4% in Sao Paulo before
paring some gains to trade up 0.9%. Minerva shares were up 2.2%
in morning trading but reversed course in early afternoon,
slipping 0.5%.

($1 = 5.1118 reais)

 (Reporting by Ana Mano in Sao Paulo; additional reporting by
Lucinda Elliott in Montevideo; Editing by Kirsten Donovan and
Bill Berkrot)
 ((ana.mano@thomsonreuters.com; Tel: +55-11-5644-7704; Mob:
+55-119-4470-4529; Reuters Messaging:
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