Lala can question the sale of Itambé

The purchase of the Itambé by French Food for Lactalis WINS contours of a future legal battle. The Mexican dairy company Lala, who tried to buy the Itambé-but it was only with the Force, can enter the Justice to question the operation, second source close to the company. In a conference call yesterday with analysts about the acquisition of Force, the President of Lala, Scot Rank, was economical on the subject, but admitted that the company is "analyzing with external commercial and legal implications" of the sale of the Itambé for for Lactalis. He made the statement when an analyst questioned whether the operation would change the competitive environment for the company which has just join in Brazil. In August, Lala announced the purchase of the Force, which was controlled by the J&F, and up to 100% of the shares of Itambé (joint venture between the Force and the Central Cooperative of Farmers of Minas Gerais Ltda-CCPR). The shareholders ' agreement between Force and CCPR predicted right of first refusal to buy back the central slice of 50% on Itambé in case of sale of the Force. The CCPR has exercised this right and resumed control of the Itambé, but last Tuesday surprised the market by announcing the sale of the mining company to the giant for Lactalis. Searched for Lactalis, chose not to speak. The CCPR did not respond to the request. The basis for the eventual questioning of the transaction by Lala is that during the negotiations for the sale of the Force (which included participation in Itambé) was signed a confidentiality agreement, whereby companies that participated in the process of buying and presented offer by assets could not negotiate with the CCPR by the period of two years, as I have already informed the value. Another effect of the sale of the Itambé for for Lactalis is that Lala should go back to prospect in the Brazilian market of dairy assets, said the same source close to Mexican company. In the Conference call yesterday, Scot Rank, CEO of Lala, also made sure to point out that the Existing milk supplies and from Itambé have always been independent. "The Force has fully milk supply operations independent of the Itambé", said, even before being questioned by analysts. The reason for the concern is that the deal between for Lactalis and CCPR includes a long-term supply of milk. Under the agreement, the associated milk producers of the CCPR will provide the raw material for the Itambé. As she ran out of the Itambé, Lala lost chances of synergy gains in production, some analysts believe.