Brazil/Mexico: Lala makes US$1.9b offer to enter Brazil

After several unsuccessful attempts to enter the Brazilian dairy market, Mexican company Lala has made a purchase offer for its counterpart Vigor Alimentos (owned by the J & F investment fund), for approximately 6 billion Brazilian reais (US$1.9 billion) ). The agreement is expected to be completed this week, although the value of the offer may diminish over certain terms still under negotiation.

Although talks between LALA and J&F are already fairly advanced, there are still doubts within the sector regarding the next step for the Mexican company, since once before it tried to purchase the company Itambé (now itself part of Vigor), but failed after months of negotiation.

The sale would have little impact on the Brazilian dairy market, as the company would simply change hands. For Lala, the operation represents an opportunity to enter the Brazilian market and expand its operations in Latin America through Vigor, which is a market leader in some dairy categories.

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