Marfrig Divests Slaughtering Plants to Minerva in Major Meat Market Realignment

In a deal that has stirred the global meat industry, Brazil’s protein production behemoths Marfrig and Minerva have decided to redefine their market focuses. Marfrig will sell 16 of its slaughtering plants to Minerva for 7.5 billion Reais (US$1.54 billion), a move that will transform its operational profile in South America. This sale will allow Marfrig, which oversees U.S.-based National Beef and BRF SA in Brazil, to zero in on large-scale industrial facilities, emphasizing the production of processed meat products.

This strategic decision signifies Marfrig’s transition from a commodity-centric approach to a value-driven one, targeting higher-value branded processed meat and premium fresh cuts in the South American market. In contrast, Minerva is expanding its beef exporting business. The plants involved in the sale, accounting for about 40% of Marfrig’s South American sales, are situated across Chile, Brazil, Argentina, and Uruguay. The transaction awaits finalization subject to shareholder and regulatory approvals, with Marfrig already receiving a 1.5 billion Reais down payment. Minerva has secured a robust financial backing from J.P. Morgan for this acquisition.