Minerva Foods, one of South America’s leading beef exporters, has entered into an agreement to acquire Breeders and Packers Uruguay (BPU Meat), a subsidiary of the Japanese group NH Food, for approximately USD 40 million — much less than the USD 135 million the Osaka-based conglomerate paid for the slaughterhouse just over five years ago.
In a material fact, Minerva explained that BPU Meat, located near the city of Durazno in central Uruguay, is one of the most modern slaughterhouses in the region, with a slaughter capacity of 1,200 heads of cattle per day. Currently, 85 percent of the unit’s sales are exported to high-income markets such as Europe, the U.S., Japan, and South Korea, as well as China.
The new plant would give Minerva a total slaughtering capacity of 3,700 heads per day in Uruguay, which means the company would overtake another Brazilian meatpacking giant, Marfrig, as the leader in the country.
According to Uruguay’s El Observador, before the deal Marfrig held 26.6 percent of the Uruguayan market, while Minerva accounted for nearly 19 percent.
The South American country is one of the world’s biggest beef exporters, with around 5 percent of the global market share.
After Minerva announced its intentions in November, Uruguay’s Agriculture Minister Fernando Mattos said that Marfrig and Minerva could account for 60 percent of the national market. He said the ministry would assess whether this concentration is “excessive” or not.
The conclusion of Minerva’s acquisition of BPU Meat is subject to approval from the antitrust authorities.
Minerva is increasingly seeking geographic diversification, especially in richer markets. In October 2022, the company announced another major acquisition in Australia: the country’s largest lamb slaughterhouse, for which it is paying USD 260 million.
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