Brazil: JBS sells business in Argentina, Paraguay and Uruguay
JBS SA, the world’s largest meat producer, has announced the agreement to sell its meat operations in Argentina, Paraguay and Uruguay to Brazilian competitor Minerva SA for $300 million.
According to Minerva, $280 million will be paid in cash at the closing of the transaction, which is expected to be in July, whilst the remaining amount will be paid after the conclusion of due diligence.
Minerva acquired five plants from JBS in Argentina, four of which were closed due to a revenue drop and issues with the export quotas that were imposed, those plants will remain closed until the market sees an improvement, according to Minerva.
After the announcement of the transaction, Minerva increased its net revenue in R$ 1,4 billion ($0.4 billion). With this transaction, Minerva’s common shares rose nearly 5% and JBS rose 8%.