Saudi Arabia will taken on a 20% stake in Minerva, one of Brazil’s largest beef producers, in a transaction that will raise as much as US$390 million for the company and help it access Middle East markets.
State-owned Saudi Agricultural & Livestock Investment Co (Salic) will acquire 47.8 million new shares of Minerva, Arabian Business reported, though the stock sale may eventually comprise 99.7 million shares.
This agreement was revealed within a few weeks of the ban on importing Brazilian beef to Saudi being lifted.
The 2012 ban was imposed after the death of an animal with symptoms of mad cow disease in the Brazilian state of Paraná, which was later proven not to have developed that condition.
The two countries signed a Memorandum of Agreement (MoA) to lift the ban earlier this month, which was commemorated by Brazil’s Minister of Agriculture Kátia Abreu, who represented the interests of Brazil in Saudi Arabia as well as the Saudi Food and Drug Authority (SFDA).
At the time, she noted that the trade agreement could lead to Saudi Arabia importing approximately $150 million worth of beef per year.
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