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Marfrig and JSL pull out of logistics deal

Marfrig and JSL have announced that they have failed to reach an agreement on transferring the management of their logistics operations from the food company to the transport company.

"The companies have decided to end the negotiations, but continue to evaluate potential partnerships involving, for example, the provision of supply chain management and the operation of distribution centers," the companies said, in a joint statement. Marfrig still has its "capitalization plans" through its logistics assets, and JSL has reiterated its forecasts for 2012, as the deal in question was not part of its estimates.

The agreement stipulated that JSL could buy "certain logistics assets, fit for the operation of refrigerated products" from Marfrig, for R$ 150 million. It could also have provided receiving, storing, handling, distribution and dispatch services for goods and products at distribution centers.

Information provided by Reuters



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