Home   News

Investors punish Minerva shares after deal for 16 Marfrig abattoirs

Shares in South America’s largest beef exporter fell sharply on Tuesday as investors digested Minerva’s move to acquire 16 slaughterhouses from rival meatpacker Marfrig for 7.5 billion reais ($1.53 billion).

Minerva shares fell 15% in morning trading while Marfrig jumped 9%.

Analysts warned that the move, making Minerva one of the world’s biggest beef sellers, could strain its debt levels and weigh on expected dividends.

“We are surprised with the magnitude of this M&A. We believe part of (Minerva’s) investment thesis is supported by its (dividend) payout, and we expect a negative share reaction to the news,” Goldman Sachs analysts said in a note to clients, while noting the “strategic merit” of the deal.

Click here to see more...

Trending Video

House of Delegates & Leman Recap with Tyler Holck

Video: House of Delegates & Leman Recap with Tyler Holck

In today's program, we dive into a comprehensive recap of the House of Delegates, delving into the dynamics and key takeaways from the event. Tyler shares insights into the valuable lessons learned during this gathering, emphasizing the critical topic of traceability and shedding light on any surrounding controversies. An update on the intriguing intersection of feral pigs and the pork supply chain adds a unique perspective. The conversation then shifts to the pressing issues of PED and PRRS, exploring where and when proactive measures should be implemented. Tyler wraps up with a thorough recap of the Leman Conference, offering a final thought and an overall review of the latest developments in the swine industry.