Signed in the summer of 2023, the deal included the transfer of three of Marfrig’s plants in Uruguay to the Minerva Group for the sum of 675 million reais (more than 106 million euro at today’s exchange rate). Now tariffs are complicating the deal: when, in the framework of Donald Trump’s Trade War, Brazilian meat faces a 50% tariff on entry into the United States, and Marfrig no longer wants to deprive itself of strategic foreign assets and unilaterally exits the deal. The Minerva Group, however, does not intend to let go of the three slaughterhouses.
Tariffs scuttle the deal
So far, Reuters summarizes, the dispute between the Brazilian meat giants is made up of communications to the stock exchange. Marfrig started: market conditions are very different than when the deal was signed, is the gist of the position, and the reason behind the fact the entity doesn’t wish to honor the contract. But Minerva, which by acquiring the three slaughterhouses would grab 43% of the meat processing capacity in Uruguay, isn’t accepting the change of plans. What will it do? Continue with the licensing processes of the local authorities for the time being. This is not a given, because in Uruguay the antitrust authority and the business community look on with hostility and oppose the creation of such a vast meat hub under the same Brazilian holding company.
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