Brazilian beef company
JBS S.A. expects U.S. authorities to OK beef deal
JBS S.A. JBSSS3.SA, the Brazilian beef company that is buying National Beef Packing Co and the beef operations of Smithfield Foods Inc (SFD.N: Quote, Profile, Research), said Wednesday the deal should win approval by the U.S. Justice Department without the company having to divest any assets.
"We are confident we will be successful. We are not thinking about divesting," Joseley Batista, JBS president, told analysts and journalists in a conference call.
The purchases, if approved, will make JBS the largest U.S. beef producer with about 33 percent of the market, industry sources said.
Batista also said the company did not intend to reduce cattle slaughter at the U.S. plants at this time. Analysts have said there is more slaughter capacity than there are cattle and that the beef industry needs to reduce production.
"We do not expect to close or shut down any plants," said Batista
(Published by Reuters March 5, 2008)