JBS acquisition of Moy Park approved
JBS owns a global group that mainly produces primary and processed beef products, with some activity in poultry and pork. It exports into the European Economic Area (EEA – the EU plus Norway, Iceland and Liechtenstein) frozen and processed meat products to caterers and processors.
Meanwhile, Craigavon, Northern Ireland-based Moy Park rears live chickens and supplies fresh and processed chicken. It is already Brazil-owned, being part of Brazil’s Marfrig Group, a supplier of poultry meat mainly in the UK and Ireland. “Moy Park is mostly active in the supply of primary (fresh) poultry and processed poultry in the UK and Ireland, while in the other member states is mainly active in the supply of processed meat - poultry and, to a limited extent, processed beef,” according to Commission documents. It added that Moy Park also sells some processed pork.
The Commission – acting as the EU’s top competition authority – said the deal would not cause competition problems because of the two parties’ limited market shares: “Numerous alternative suppliers will also continue to be active in the markets concerned by the transaction,” said the Commission, which fast-tracked its approval, imposing no conditions.
Marfrig announced the sale of Moy Park in June 2015, noting it aims to “focus more intensely on pursuing growth opportunities”, such as by increasing beef exports from Brazil, especially to Asia and the US, using the deal to strengthen its capital structure and increase cash flows.
