JBS sells Argentine operations to Minerva for $300 million
According to Reuters, meat processor JBS has agreed to sell its Argentine operations to a smaller rival, Minerva, for $300 million.
According to Reuters, meat processor JBS has agreed to sell its Argentine operations to a smaller rival, Minerva, for $300 million. The transaction, which is expected to close in July, also involves the sale of JBS plants in Paraguay and Uruguay. Of the five plants acquired from JBS in Argentina, four are closed and will remain so until market conditions improve there, Minerva said in a conference call.
JBS, which will use proceeds from the transaction to cut debt, experienced difficult operating conditions in Argentina after beginning its international expansion there by acquiring domestic rival Swift in 2005. Weakness at JBS’ Mercosur division, comprising Argentina, Brazil, Uruguay and Paraguay, contributed to a 14.3% drop in the company’s net revenue in the first quarter.
J&F Investimentos, JBS’ parent company, recently settled with federal prosecutors and agreed to pay a 10.3 billion reais ($3.1 billion) fine for its role in the crimes admitted by the Batista family, who control the group. In exchange for being spared jail time, Chairman Joesley Batista, CEO Wesley Batista, and other high-level company officials admitted to paying about $150 million—mostly in bribes—to nearly 2,000 Brazilian politicians, including Brazil’s past three presidents, according to the plea deal.