Australian watchdog says JBS’ deal for Rivalea raises competition concerns By Reuters
© Reuters. FILE PHOTO: The brand of Brazilian meatpacker JBS SA is seen within the metropolis of Jundiai, Brazil June 1, 2017. REUTERS/Paulo Whitaker/File Photograph
(Reuters) – Australia’s competitors regulator on Thursday raised considerations over meatpacker JBS SA (OTC:)’s proposed A$175 million ($128.3 million) acquisition of pork processor Rivalea.
Brazil’s JBS in June introduced an settlement to purchase Rivalea from Singapore-listed QAF Ltd in a deal that might make it Australia’s market chief in pork processing.
If the deal proceeds, JBS may have a big presence in pig farming, export-accredited pig abattoirs, and associated merchandise via its Primo Smallgoods model, the Australian Competitors and Shopper Fee (ACCC) stated https://www.accc.gov.au/media-release/jbs-proposed-acquisition-of-rivalea-raises-preliminary-competition-concerns?utm_source=twitter_accc&utm_medium=social&utm_campaign=p_tru_g_awa_c_mergers_jbs_rivalea.
“Our concern just isn’t restricted to JBS probably denying entry to processing services, it is also concerning the worth and phrases on which entry can be offered,” ACCC Deputy Chair Mick Keogh stated.
The regulator additionally raised considerations that after the deal, JBS could elevate the worth of recent pork or cut back the provision of pork to some producers from Rivalea’s Diamond Valley Pork abattoir.
“The ACCC’s preliminary view is that whereas JBS and Rivalea don’t compete intently, the proposed acquisition could give rise to vertical integration considerations,” Keogh added.
JBS, QAF and Rivalea didn’t instantly reply to requests for remark.
($1 = 1.3646 Australian {dollars})
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