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Australian watchdog says JBS’ deal for Rivalea raises competition concerns By Reuters


© Reuters. FILEPHOTO: A logo representing Brazilian meatpacker JBS SA was seen in Jundiai on June 1, 2017. REUTERS/Paulo Whitaker/File Photo

(Reuters) – Australia’s competition regulator on Thursday raised concerns over meatpacker JBS SA (OTC:)’s proposed A$175 million ($128.3 million) acquisition of pork processor Rivalea.

Brazil’s JBS has announced a June deal to purchase Rivalea from QAF Ltd, which is listed in Singapore. It would be the largest Australian pork processing company.

If the deal proceeds, JBS will have a significant presence in pig farming, export-accredited pig abattoirs, and related products through its Primo Smallgoods brand, the Australian Competition and Consumer Commission (ACCC) said

ACCC Chair Mick Keogh explained that JBS isn’t only concerned about JBS denying processing facility access, but also the terms and price at which it would provide access.

Concerns were also expressed by the regulator that JBS could increase the cost of fresh pork and reduce supply to certain producers who are based at Rivalea’s Diamond Valley Pork abattoir.

Keogh stated that the ACCC had already concluded that JBS and Rivalea are not closely related, but it was concerned about vertical integration.

JBS and QAF did not respond immediately to our requests for comment. Rivalea, QAF and JBS have yet to reply.

($1 = 1.3646 Australian dollars)

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