Photo for illustrative purposes only. The meat section at a supermarket in Marilia in Sao Paulo, Brazil, on April 19, 2019. Alf Ribeiro/Shutterstock

Halal Industry

Saudi Arabia’s SALIC increases stake in Brazil meat company Minerva

The Saudi Agricultural and Livestock Company (SALIC) has increased its stake in Brazilian meat firm Minerva Foods.

SALIC increased its stake in Minerva from 25.5% to 33.83%, state news agency SPA reported on Wednesday (September 16).

The transaction involved SALIC (UK) Limited converting 61,593,622 Minerva common shares it acquired to reach a consolidated stake of 185,536,600 shares, according to documents filed by Minerva.

SALIC is fully-owned by Saudi sovereign wealth fund the Public Investment Fund. It was formed in 2012 to secure food supplies for Saudi Arabia through mass production and investment. SALIC’s bigger stake in Minerva reflects its “eagerness to meet the objectives of the Kingdom’s food security program”, said SPA.

In the three months to June 30, Minerva’s gross revenue reached 4.625 billion reais ($0.88 billion), 3.344 billion reais of which came from exports.

Apart from its Brazilian division, Minerva also runs Athena Foods that comprises operations in Paraguay, Argentina, Uruguay and Colombia, as well as distribution in Chile. Minerva is currently completing a strategic review of Athena Foods.

Exports make up more than 70% of both the company’s Brazilian division and Athena Foods. Sales to the Middle East accounted for around 9% from Brazil and 7% from Athena in the second quarter of the year. Asia is the company's biggest export destination, led by China.

Minerva operates 24 slaughter and deboning plants and three processing plants. In the 12 months ending June 30, it recorded gross sales revenue of 19.1 billion reais.

Saudi Arabia consumes around 550,000 tons of red meat annually, around 70% of which is imported, according to SALIC.

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