JBS SA executives expect the company's pending purchase of Marfrig business units Seara Brasil and Zenda to be finalized in the second half of 2013. JBS, the world's largest meat and poultry processor, on June 7 entered an agreement with Marfrig to purchase Seara, a pork and poultry unit, and Zenda, a leather operation.
The acquisition process is ongoing, JBS officials said during a call with shareholders on August 15, as the companies await approval from Brazilian antitrust agency Conselho Administrativo de Defesa Economica (CADE).
The combined value of Seara Brasil and Zenda was established at R$5.85 billion. That amount will be paid as JBS assumes the debt held by Marfrig. Wesley Batista, chief executive officer of JBS SA, confirmed during the call that JBS is working with bankers in an effort to reduce the debt.
Finalization of the acquisition is believed to nearly eliminate Marfrig's debt, and help Marfrig focus on its beef operation in Brazil.
