Competition Watchdog Ratifies JBS's Purchase Of Seara Brasil
News: Brazil's antitrust agency, the Administrative Council of Economic Defense (CADE), has approved the acquisition of Seara Brasil by Brazil-based meat company JBS. The deal, which was approved without restrictions, will see JBS acquire Seara Brasil, the poultry and pork unit of local rival Marfrig Alimentos, for BRL5.85bn (US$2.55bn) in assumed debt. JBS is required to wait for at least 15 days before it completes the transaction. The meat company plans to close the deal by September 30.
BMI View: JBS is intent on further internationalising its operations with an emphasis on acquisitions as a means of achieving this goal. Upgrading logistics, production and IT systems is seen as key, as is continued marketing investment and a focus on product diversification and optimisation to added value, processed lines.