A merger of three companies including subsidiaries of Belgian giant Univeg has been declared void due to a misunderstanding between officials in Argentina's Rio Negro province, website Adnrionegro.com.ar reported.

The merger agreement between Argentina-based Univeg Expofrut, Univeg Fruit Argentina and Expomarket was previously approved by the province's Department of Corporations head Virginia Francioni, but it turns out she wasn't actually in charge by law.

The story reported former interior minister Edgardo Bagli appointed Francioni as head of the department verbally but not by official decree, which means all her official acts in that capacity are now invalid.

The planned corporate restructuring involved Expomarket becoming part of Univeg Expofrut, which itself would become part of Univeg Argentina, but the legal confusion means more than US$23.6 million in transferred capital is hanging in the balance.

Bagli is now the province's undersecretary of human rights, with his previous post now occupied by Hugo Horacio Lastra.

Photo: ADN Rio Negro

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