March 3, 2004
Cargill SA Buys Stake In Argentina Beef Exporter
Cargill SA, the Argentine unit of the U.S.-based agricultural giant Cargill Inc., announced the purchase of a 50% stake in Finexcor, one of Argentina's leading beef exporters.
Cargill, which is the No. 1 exporter of Argentine grains and oilseeds, said the two companies will work together to "consolidate" Finexcor's leadership in Argentina's beef industry.
"This deal is based on the vision that both companies share of the medium and long-term perspectives that the beef industry offers," Cargill said in a statement. "The purpose is to achieve greater growth and a broader presence in the national beef industry, as well as expanded opportunities worldwide."
The investment in Finexcor, which local media reported to be worth at least $70 million, is Cargill's first foray into the Argentine beef industry.
Finexcor is Argentina's No. 1 exporter of chilled and frozen beef and its No. 2 exporter of beef products.
Finexcor's annual sales total more than $140 million.
The acquisition of Finexcor shares comes on the heels of a recent announcement by Cargill that it will spend $200 million to build a new soybean processing facility and improve current processing plants and ports in the province of Santa Fe.
Cargill Inc. is multinational agro-industrial leader with some 98,000 employees in 61 countries.
Cargill SA, which has been in Argentina since 1947, accounted for almost 20% of total grain and oilseed exports in 2003, according to Agriculture Secretariat data.
Cargill SA's annual sales, through May of 2003, totaled $2.7 billion and 95% of this came from exports.