Australian regulators have approved a bid from JBS to acquire Australia’s Primo Group. The approval by Australia's Foreign Investment Review Board (FIRB), subject to conditions at Primo's abattoir, allows the purchase by JBS USA Holdings Inc., through its wholly owned unit JBS Smallgoods HoldCo Australia Pty. Ltd., to move ahead.
"The government welcomes foreign investment in Australia and continues to ensure that investments are consistent with Australia's national interest," Australian Treasurer Joe Hockey said in a statement issued to Reuters.
JBS in November 2014 announced its intent to purchase Primo Group for an amount of AU$1,450 million (US$1,250 million).
Established in 1985, Primo Group has a portfolio of well recognized and highly regarded brands including Primo Smallgoods, Hans, Beehive, Hunter Valley Quality Meats and Primo Quality Meats. The business currently employs in excess of 4,000 employees and operates from five manufacturing plants, seven distribution centers and 30 retail shops.
At the same JBS announced its intent to purchase Primo Group, the Brazilian-based meat and poultry company also revealed its plans to acquire Big Frango for an estimated BRL430 million (US$165.8 million).
The Big Frango Group is one of the largest groups in the poultry sector in the Southern region of Brazil, with more than 49 years of experience and a processing capacity of 460 thousand birds per day in two processing facilities.