Acquisition of Seara by Marfrig Approved in EU

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Monday, December 21, 2009

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Acquisition of Seara by Marfrig Approved in EU

EU - The European Commission has approved the acquisition of Seara by Marfrig.

The European Commission has cleared under the EU Merger Regulation the proposed acquisition of the meat company Seara Alimentos Ltda. and associated companies by meat producer Marfrig Alimentos S.A., both of Brazil. After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

Marfrig produces a diversified range of products in Brazil and internationally focusing on food products, in particular food derived from animal protein. It has industrial plants in Brazil, Argentina, Uruguay, Chile and Europe.

Seara, currently belonging to Cargill Incorporated, is active in the rearing of live chickens and pigs for slaughter and the production of primary and processed chicken and pork products, as well as processed beef products in Brazil. It does not have any production facilities in Europe but exports chicken products to Europe through its export sales offices.

The Commission's examination of the proposed transaction showed that the parties' activities would overlap in the supply of primary chicken meat and processed chicken meat mainly in the UK and The Netherlands. However, these overlaps are limited and the new entity would continue to face several effective competitors with considerable market share. The Commission therefore concluded that the proposed transaction would not raise any competition concerns.