Fresh Produce

Brazil's Minerva To Buy Uruguayan Meatpacker From NH Foods

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Brazilian meatpacker Minerva SA has made a non-binding offer to buy Breeders & Packers Uruguay from Japan-based NH Foods Ltd, it said in a securities filing.

The company said the transaction is subject to the conclusion of a due diligence process by the end of 2022, and until then Minerva will have exclusivity to close the deal.

It added the purchase is aligned with the company's strategy to 'maximize its geographical diversification through the development of alliances and partnerships'.

The information was published earlier by newspaper Valor Economico, which added the deal was seen reaching $35 million to $45 million and is expected to be sealed by December 15, the report said.

Minerva did not disclose a figure for the deal.

In October, meat firm Minerva reported a 15% increase in gross revenue in the third quarter of its financial year, while EBITDA was up 24% year-on-year.

Currency Gains

Elsewhere, the Brazilian real jumped on Monday after President-elect Luiz Inacio Lula da Silva said fiscal responsibility was equally important as spending to improve the economy, while its regional peers were mixed on growth worries following COVID-19 flare-ups in China.

The real rose 1.3% in volatile trading against the dollar, gaining for the second straight day.

The currency and the stock index have slumped this month as investors fretted about the state of Brazil's public accounts after Lula's incoming administration proposed exempting some 175 billion reais from the spending cap on next year's budget to pay for welfare programmes.

However, the leader of Lula's Workers Party said in the lower house on Friday that the transition team could include a new fiscal framework commitment in a proposed constitutional amendment.

News by Reuters, edited by ESM – your source for the latest fresh produce news. Click subscribe to sign up to ESM: European Supermarket Magazine.

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