Brazil’s Marfrig sells abattoirs to Minerva in $1.5 bn deal
SAO PAULO, Aug 28 (Reuters) – Brazilian meatpacker Marfrig has agreed to sell 16 slaughtering plants to rival Minerva for 7.5 billion reais ($1.54 billion) in a deal that will significantly change its profile in South America, according to a securities filing.
With the sale, Marfrig, which also controls U.S.-based National Beef and BRF SA in Brazil, will retain only its larger-scale industrial facilities in the region in a bid to focus on production of processed meat products.
The move marks a shift away from a commoditized business model for Marfrig while competitor Minerva, one of South America’s largest beef exporters, goes in the opposite direction.
A spokeswoman for Marfrig told Reuters the plan is to focus on sale of higher-value branded processed meat products and premium fresh cuts in South America.
She said the plants being sold represent some 40% of Marfrig’s sales in South America.
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