Marfrig Group beefs up investment in Mercosur
Brazilian meat processor and packer the Marfrig Group plans to beef up its already significant presence in the Latin American market with the acquisition of four more abattoirs and meat packing plants in Argentina and Uruguay.
Once concluded, the deals — valued at US$266.8 million — will give the Brazilian company a 70.51% stake in Argentina’s Quickfood and full control of Uruguayan Establecimientos Colonia Ltda. and Argentinean Best Beef S.A. (Vivoratá) and Estancias del Sur (EDSA). The acquisitions will boost Marfrig’s capacity to 18,100 head per day and make it the second largest meat packer in Latin America after JBS-Friboi.
Commenting on the deals, Paulo Molinari, a beef market analyst in Argentina, said that the Argentinean beef sector had been 'trashed' in recent years due to the peso/dollar exchange rate and that Brazilian companies are now taking advantage of this situation to acquire local businesses.
The company already holds a 25% share of the Uruguayan market and operates units in Argentina and Chile.
