Commodities
Brazil Beef Shipper Minerva to Buy Rival Assets for $1.5 Billion
- Minerva agreed to buy some South America assets from Marfrig
- Shares slump 16% as Morgan Stanley says deal is ‘pricey’
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Brazil’s Minerva SA agreed to buy some assets from rival Marfrig Global Foods SA for $1.5 billion, a “pricey” deal that will create a South American beef giant. Minerva shares slumped.
The agreement to acquire 16 plants in Brazil, Argentina, Uruguay and Chile will boost Minerva’s cattle slaughtering capacity by 44% and expand its market share in the export market, the company said in a statement on Monday. While the deal could be “transformational,” Morgan Stanley analysts labeled the acquisition as “pricey.”