Saudi’s SALIC and Brazil’s Minerva acquire Australian meat ‎company for $258 mln

The Saudi Agricultural Investment and Livestock Production Company (SALIC), owned by the Public Investment Fund, said today, Friday, that it had acquired, with the Brazilian Minerva Meatpacking Company, the Australian Mutton Company (ALC) for 970 million riyals ($258 million).

According to “Reuters”, SALIC stated that the acquisition was made through (Merva Foods Australia), a joint venture established last year between SALIC and Minerva.

According to a disclosure to the regulators, after the deal, Minerva will control about 15 percent of the sheep and sheep market in Australia, where it already owns Shark Lake and Great Eastern Abateware.

“We believe that supporting our operations in Australia and investments in improving facilities and optimizing operational and commercial structures would lead to significant improvement in the coming months,” Minerva said, without elaborating on cost savings.

Minerva indicated that the Australian company has the capacity to slaughter 3.78 million heads annually, and owns two manufacturing facilities in Victoria, explaining that exports represent 93 percent of its sales.

Sulaiman Al-Rumaih, CEO of SALIC, said, “The new acquisition, in partnership with the Brazilian company Minerva, comes within the framework of SALIC’s strategic objectives by contributing to achieving national food security goals in strategic commodities by expanding and diversifying foreign investments in countries with comparative advantage. The largest meat exporter in the world, with a percentage of more than 42 percent

The Brazilian company expects the transaction to strengthen its presence in niche markets and expand its portfolio of higher value-added products.

SALIC, which was established in 2011 to secure food supplies to Saudi Arabia through mass production and foreign investment, owns 31 percent of the shareholder capital of Minerva.