SÃO PAULO –Brazilian producer Minerva Foods announced on Aug. 28 that it would buy 16 meat processing plants from Marfrig Global Foods S.A. for 7.5 billion reais ($1.5 billion).

Marfrig officials said it sold 11 beef units, including three that are inactive, to Minerva in Brazil. It also sold one beef plant in Argentina, three plants in Uruguay and one lamb unit in Chile. The deal also included a distribution center in Brazil.

 When the deal is finalized, Marfrig said it would receive a payment of 1.5 billion reais ($306 million), with the remainder paid at the closing date. The transaction is subject to shareholder and regulatory approval.

“After the transaction, Marfrig will continue to operate in the beef segment in South America, focusing on the production of value-added products,” the company stated in a presentation.

In an investor relations document, Minerva said the acquisition of the plant would increase its beef slaughtering capacity by 44%. The company stated that if the deal goes through, it would have 40 total beef plants that can process 42,439 head per day. 

With the acquisition, Minerva would have beef plants in Brazil, Paraguay, Argentina, Uruguay and Colombia.

Total lamb production for Minerva now includes five units in Australia and one in Chile that can process 25,716 head per day.