After the Australian Competition & Consumer Commission (ACCC) granted its approval for JBS’ A$1.45 billion takeover of Primo Group in February, Australia’s Treasurer, Joe Hockey has given his conditional approval for the deal this week.
Brazil-listed JBS, Australia’s largest meats processor, has been working to gain all necessary regulatory approvals for the deal since November 2014 when it offered A$1.45 billion for Primo Group, which is Australia’s largest ham, bacon, and smallgoods manufacturer, controls the Hans and Primo Quality Meats brands, and operates processing plants across Australia and New Zealand.
The ACCC has stated that Primo is not a strong competition constraint to JBS, however, farmers, competing abattoirs, and meat and smallgoods manufacturers are concerned the deal will reduce competition for fed cattle in New South Wales and Queensland.
Mr. Hockey has stated that the ACCC will monitor the impact of any further consolidation of abattoirs, JBS will maintain the custom service killings currently being offered by Primo at its plant in Scone, NSW, and JBS will provide reports to the Foreign Investment Review Board (FIRB) on its compliance every six months until advised otherwise.
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