Minerva S.A. (BOVESPA:BEEF3) is set to continue its local spending spree, with suggestions it is in early stage talks to buy Australia's second-largest meat processor in a deal that could be worth close to $2 billion. The company is negotiating with Cargill Australia Limited and Teys Australia Pty Ltd. to buy their Australian meat-processing joint venture. The family-owned Teys Australia has a 50-50 beef processing and cattle feeding arrangement with Cargill Beef Australia.

The pair operate meat-processing facilities in Queensland, NSW and South Australia. Sources said a possible sale is being driven by Teys, but Cargill's commitment extends to the Teys family and it would also exit if it is no longer a shareholder.