Minerva Foods (Minerva S.A. – B3: BEEF3 | OTC – Nasdaq International: MRVSY), a prominent exporter of fresh beef in South America, has completed its acquisition of Marfrig assets in Brazil following approval from the country’s antitrust authority, CADE. The company announced that it has acquired 13 cattle and sheep slaughter and deboning plants, alongside a distribution centre, marking a significant expansion of its operations.
With this acquisition, Minerva Foods now has the capacity to slaughter 22,336 head of cattle daily across its 21 plants within the Brazilian market. Additionally, the company is progressing with the integration of a cattle slaughter and deboning facility in Argentina and a lamb plant in Chile, which are also part of the transaction. This integration will provide Minerva with the ability to slaughter 5,978 head of cattle daily in six plants in Argentina and will enhance its lamb operations, allowing it to process up to 25,716 head per day across five plants in both Australia and Chile.
The deal not only bolsters Minerva Foods’ production capacity but also expands its access to international markets. With this strategic move, the company aims to strengthen its presence in key regions including North America, Europe, the Middle East, and Asia. Notably, Minerva is poised to become the leading supplier of beef to China, thanks to the largest number of plants in the sector approved for exports to that country.
The integration of these new facilities positions Minerva Foods to effectively meet the rising global demand for beef, leveraging the efficiencies of South American production. The company intends to maximise its competitive advantages by capturing operational and commercial synergies, thus enhancing its standing in the global animal protein market.
Fernando Queiroz, CEO of Minerva Foods, highlighted the significance of this acquisition as a pivotal moment in the company’s business strategy. “For more than 30 years, we have built a strong track record in the animal protein market, creating connections between people, food, and nature. We are pleased to take another major step in our global positioning and are excited to welcome new team members resulting from the integration of these plants,” said Queiroz.
The acquisition deal also includes three cattle slaughtering and deboning plants in Uruguay, which are currently under review by the nation’s competition authority. Overall, the acquisition involves a total of 16 slaughter and deboning plants throughout South America, in addition to the distribution centre in Brazil, with a total investment of approximately R$ 7.5 billion.
As Minerva Foods continues to enhance its operational capabilities, the acquisition not only solidifies its status as the second-largest beef producer in South America but also expands its market presence within the region. This strategic move aims to minimise risks while maximising opportunities in the dynamic global animal protein market, positioning Minerva Foods for sustained growth in the coming years.
