Brazil’s competition body approves JBS’s purchase of Tyson do Brasil
Takeover approved without conditions
Established in 2008, Tyson do Brasil has three integrated processing plants, two in Santa Catarina and one in Parana.
The purchase of the Tyson’s Brazilian poultry business, for US$175 million, was announced on July 28. Tyson’s Mexican poultry operation, known as Tyson de Mexico, was also purchased, with a total purchase price of US$575 for both operations.
Tyson do Brasil, which has been in existence since 2008, had been employing 5,000 people and is expected to generate annual revenues of about $350 million for JBS Foods. When the transaction was announced, JBS had stated that it expects to maintain all the operations working to capacity with the existing workforce and to maintain all labor contracts.
Donnie Smith, CEO of Tyson Foods, had said that it hopes to use the revenue from the sale of Tyson do Brasil and Tyson de Mexico to help finance its recent acquisition of Hillshire Brands, and to help expand the company’s presence in China.
"Although these are good businesses with great team members, we haven't had the necessary scale to gain leading share positions in these markets," Smith said.