JBS gets green light to buy Primo Group in Australia
JBS SA will face no objections regarding competition in Australia in its acquisition of the Australian producer of processed meats Consolidated Food Holdings Pty Ltd (Primo), says the Australian Competition Consumer Commission (ACCC).
Numerous complaints were made to the ACCC in the months after the announcement by JBS on November 20 of its plans to acquire the Primo Group through its subsidiary JBS Australia for AU$ 1.4 billion (R$ 3.17 billion).
JBS expects to achieve synergies of AU$ 30 million (R$ 65.7 million) with the acquisition of Primo Group, a leader in processed meats in Australia and New Zealand, and will use its new assets to capitalize on growing demand in Asia, said Wesley Batista, global CEO of the company, during a conference call with analysts in November.
JBS will increase its market share in Australia only slightly in the deal, and there will be enough competition from other processors and supermarket chains in relation to purchases of cattle in New South Wales and southern Queensland, the regulator added. The deal will not adversely affect meat buyers or the provision of cattle slaughtering services, it noted.
Information provided by CarneTec