JBS acquisitions approved, fines levied
April 18, 2013
by Meat&Poultry Staff
SÁO PAULO, Brazil – The Brazilian Anti-trust Authority (CADE) unanimously approved all 12 operations (between leases and acquisitions) made by JBS SA between 2009 and 2012, which were submitted to the anti-trust authority for analysis. All production units incorporated by JBS during this period in Brazil will continue to be administered by the Company without any restrictions.
In addition to the approval of the totality of the operations, JBS also signed a commitment agreement (TCD) with the Authority whereby JBS guarantees it will inform CADE regarding all future operations, large or small, including leases during the next 30 months. This commitment is valid from April 17 forward.
Since the Anti-Trust Authority interpreted that JBS may at times have acted in an untimely manner with regard to certain leases, which were not submitted to the analysis of the Authority, CADE levied a fine totaling approximately $3.69 million to JBS, which the company agreed to pay.
“The company understands that [the April 17] decision by CADE is testament to the company’s responsible commitment to the beef market in Brazil,” JBS SA said in a statement.