CADE SG Admits CNA as Third Party in Marfrig/Minerva

CADE SG Admits CNA as Third Party in Marfrig/Minerva
Photo: Stella Levantesi 07.02.2024 516

CNA has a legitimate interest in the deal, which could affect the rights or interests of its members, CADE SG said.

The General Superintendent’s Office (SG) of Brazil’s competition authority CADE has admitted the Brazilian Agriculture and Livestock Confederation (CNA) as a third party in Minerva’s proposed acquisition of competitor Marfrig’s slaughterhouse business, according to a 2 February SG ruling.

CNA represents Brazilian agricultural and livestock producers, according to a 2 February SG report. The deal consists of food company Minerva’s acquisition of Marfrig’s industrial slaughtering and boning plants and a distribution center located across Brazil, Argentina and Chile.

The deal was filed with CADE on 27 September 2023 on a fast-track basis, and the SG ordered the submission of additional information on 10 October 2023, the Portuguese-language report said. The parties submitted the amended merger filing on 24 November 2023, and on 12 December 2023 the SG decided to review the merger on an ordinary rather than a fast-track basis.

CNA meets the requirements to be admitted as a third party in the merger review, having timely submitted a third-party petition to the SG, the report noted. CNA has a legitimate interest in the deal, which could affect the rights or interests of its members, and has submitted reports to substantiate its allegations which could help the SG’s merger investigation.

CNA has submitted two reports which can contribute towards the identification of potential competition problems, especially risks resulting from horizontal overlaps and a greater foreclosure of the slaughterhouse market, the report said.

The slaughterhouse market poses concerns that can be worsened by the approval of the proposed deal, the report said. The deal could reduce livestock suppliers’ business opportunities and could therefore reduce supply, prompting local beef shortages and a reduction in exports, the report added.

Source: PaRR

food markets  Brazil 

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