![Frigorífico Concepción Frigorífico Concepción](https://www.datamarnews.com/wp-content/uploads/2019/07/Frigorífico-Concepción.jpg)
Paraguay’s Frigorífico Concepción is for sale
Jul, 24, 2019 Posted by Sylvia SchandertWeek 201931
According to Valor, Marfrig Global Foods can acquire Paraguay’s second-largest beef industry, Frigorífico Concepción.
The refrigerator is for sale and can end up in the hands of Brazilian groups. In addition to Marfrig, JBJ Investimentos, owner of entrepreneur Junior Friboi – brother of Joesley and Wesley Batista – was also polled by advisers from the Paraguayan company, according to a source. In Brazil, JBJ owns the Mataboi refrigerator.
Frigorífico Concepción initial bid is considered high at US$230m, but it is already less than the US$300m it had requested a few years ago. The selling process is still in its early stages. At its peak, the Paraguayan company earned more than US$400m.
Sought by Valor, Marfrig did not comment on the matter. By e-mail, JBJ said it was unaware of “the information that JBJ would be evaluating the acquisition of the refrigerator.” Concepción was not found.
According to three sources, banks Fator and Santander may participate in the transaction. The Spanish bank even sent potentially interested parties the opportunity to sell (“teaser” in market jargon).
Today, Brazilian Minerva Foods leads the Paraguayan meat industry, with almost 45% of exports. If a Brazilian group acquires Concepción, Brazil-based refrigerators will have 70% of Paraguay’s beef exports and slaughtering capacity.
In the sector, it is believed that Marfrig is the main candidate to buy Concepción, as Minerva can hardly advance in the country due to competition issues.
In addition, Paraguay is the only South American country relevant to livestock in which Marfrig is not present. In Uruguay, the company leads in meat production and stands out as the leading private company. In Argentina, it is one of the largest exporters.
The possible purchase of Concepcíon would give Marfrig a relevant export platform from Paraguay. According to data from the Paraguayan government’s National Service of Animal Health and Quality (Senacsa), the country’s beef exports earned US$1bn last year. Of the amount, Concepción raised US$291m, according to a report from May by the Paraguayan risk rating agency Solventa.
The following chart form DataLiner shows Marfrig’s beef exports in TEUs from January 2015 to May 2019:
Source: Valor
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