Cargill, Teys Beef venture OK'd by Australia's competition commission
July 7, 2011
by Meat & Poultry Staff
MINNEAPOLIS – The Australian Competition and Consumer Commission (ACCC) does not plan to intervene in the proposed merger of Cargill Beef and Teys Bros, Cargill Beef Australia and Teys Bros announced on July 7. However, The joint venture still requires approval from the Foreign Investment Review Board (FIRB) and foreign antitrust regulators before being finalized.
"We are pleased to be one more step closer in joining our business with Cargill,” said Brad Teys, CEO of Teys Bros. “The new joint venture will give us the scale and flexibility to better service our domestic and export customers to grow our business. This will also help us to expand the number of foreign markets we are currently selling Australian beef."
"Both Teys and Cargill are committed to keeping the plants that are operating today open after the merger,” he added. “The combined business will make us more competitive in serving both our Australian and export customers.”
"Combining our businesses provides the experience, scope and scale to for us to build a world-class beef processing company and that translates into more job security for our employees and drives our growth for cattle from Australian producers," said Andrew Macpherson, managing director, Cargill Beef Australia.
Teys is the largest Australian-owned beef processing company in Australia, processing 1 million cattle and turning over more than $AUD1.2 billion (US$1.8 billion) per year. Teys consists of four beef processing facilities, a 30,000-head feedlot, a tannery, wholesaling divisions and a value-added facility.