China pounces on Marfrig's Argentinian assets
Marfrig confirmed on Wednesday 6 April that it had divested its assets in Argentina, with the meat processor Black Bamboo Enterprises acquiring all of them for a fee of $75 million.
The company said it had signed an “irrevocable agreement” with the China-based Foresun Group and a down payment of $34m had been made. The remainder of the sum will be paid in instalments over the next 12 months, Marfrig claimed in a financial bulletin.
Marfrig: Argentina ‘important’
“The assets sale does not mean that Marfrig is leaving Argentina," said Martin Secco, CEO of Marfrig Global Foods. “We recognise the importance of the country in the global meat market and continue to operate the Villa Mercedes meat plant in the province of San Luis, which currently processes 700 cattle a day.
“The change in the macro scenario outlook in Argentina is also a positive factor. The new macroeconomic measures adopted by the Argentine government and the expectation of a recovery in local cattle stock should lead to a recovery in the market in the coming years. We hence believe that it is fundamentally important to stay in the country, maintaining our best plant operation.”
Black Bamboo Enterprises will assume control of Marfrig units in Hughes, Vivoratá, Unquillo and Monte Ralo. Despite the large sum of money paid, only the slaughterhouse in Hughes is operational right now.
Marfrig has confirmed it will continue to run its slaughterhouse in Villa Mercedes, located in the San Luis province of Argentina.
