CADE approves JBS' lease of Frangosul assets
On Wednesday, August 29, Brazil's anti-trust body, CADE, unanimously and without restriction approved the lease of Doux Frangosul's assets in Brazil by JBS, the world's largest beef producer. JBS thus enters the chicken market in Brazil. The lease contract also includes Frangosul's pig unit. The ten-year contract includes a purchase option.
Under the lease agreement, JBS has paid off the company's R$ 150 million debt to integrated breeders and small service providers. Through Frangosul, JBS (which has chicken operations in the United States) has now increased its worldwide production capacity by 15%, to 9 million birds per day.
Information provided by Reuters