JBS USA clears final hurdle to acquire Primo
March 4, 2015
by Erica Shaffer
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MELBOURNE, Australia – JBS USA cleared a final regulatory hurdle in the company's bid to acquire Australian Consolidated Food Holdings Pty Ltd. (Primo). Australia's Foreign Investment Review Board (FIRB) approved the acquisition subject to several conditions related to services provided at Primo's abbattoir in Scone, New South Wales.
JBS USA Holdings will acquire Primo through its wholly owned subsidiary JBS Smallgoods HoldCo Australia Pty Ltd.
“The Government welcomes foreign investment in Australia and continues to ensure that investments are consistent with Australia’s national interest,” Treasurer Joe Hockey said in a statement.
As part of the acquisition, JBS has agreed to:
• Continue to maintain the custom service killings currently provided by Primo at its processing plant in Scone;
• Continue to maintain the custom service killings in good faith and to the best of its endeavors in both a competitive and profitable manner; and
• Provide reports to the Foreign Investment Review Board (FIRB) on its compliance with the above condition every six months, until otherwise advised by FIRB.
FIRB will review the conditions in three years.