Brazilian meatpacker Marfrig has agreed to sell 16 South American slaughterhouses to rival Minerva for R$7.5 billion (US$1.5 billion).

Marfrig, which owns National Beef and BRF SA, will reportedly focus on producing processed meat products, retaining only its large-scale industrial facilities in the region.

A spokesperson told Reuters that the company plans to focus on producing and selling higher-value branded processed meat products and premium fresh cuts in South America.

The 16 slaughterhouses reportedly represent around 40% of the company’s sales in South America and are located in Chile, Brazil, Argentina and Uruguay.