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Saudi Arabia to Take 20% Stake in Brazil Beef Producer Minerva

  • Minerva will raise as much as $390 million from stock sale
  • State-owned SALIC has mandate to improve Saudi food security
A rancher takes care of cattle owned by Minerva Foods at a farm in Barretos, Brazil.

A rancher takes care of cattle owned by Minerva Foods at a farm in Barretos, Brazil.

Photographer: Dado Galdieri/Bloomberg
Updated on

Saudi Arabia agreed to take a 20 percent stake in Minerva SA in a transaction that will raise as much as 1.56 billion reais ($390 million) for one of Brazil’s largest beef producers and help it gain better access to markets in the Middle East.

State-owned Saudi Agricultural & Livestock Investment Co. , or Salic, will acquire 47.8 million new shares of Minerva at 15.60 reais each, the meat company said late Tuesday in a filing. The stock sale may eventually comprise as many as 99.7 million shares. Minerva said the proceeds will allow it to reduce debt and help finance capital spending plans.