Minerva S.A. is close to closing yet another acquisition abroad. The Brazilian company signed an exclusivity agreement with the Japanese company NH Foods Ltd. (TSE:2282) to negotiate the purchase of Breeders & Packers Uruguay S.A. (BPU), a Uruguayan slaughterhouse with the capacity to slaughter around 1,000 head of cattle per day. According to the sources, Minerva is carrying out due diligence on the BPU.

The expectation is that the deal will be completed by December 15, when the Vilela de Queiroz company's exclusivity period ends. The values are not yet fully defined, but the transaction should be between $35 million and $45 million, said the sources. Rabobank is advising Minerva on the acquisition.

NH Foods decided to sell the Uruguayan operation at a time when the livestock cycle in the South American country was low. To get an idea of ??the discrepancy in values, the Japanese paid around $135 million five years ago to acquire the BPU. If you close the purchase of the slaughterhouse, Minerva will expand its slaughtering capacity in the country by 40%.

Currently, the company has three units in the country, with a combined capacity to slaughter 2,500 cattle per day. In Uruguay, the also Brazilian Marfrig is the leader in meat production. By taking over the BPU, Minerva is betting on the turn of the cattle cycle in Uruguay, with a greater supply of cattle in the coming years.

In the last teleconference with analysts, the company had already signaled the perspectives of improvement in the situation in Uruguay.