Cade approves purchase of Tyson of Brazil by JBS

The Brazilian antitrust authority approved the buying of the Tyson Foods Ltd. by Brazil's JBS Sa. In order published in the "Official Gazette" this Friday, the General Oversight of the Administrative Council for economic Defense (Cade) reported that restrictions on operation, the parties announced in July this year. The acquisition will result in horizontal overlap of activities of production and marketing of fresh chicken meat in the country, but in the understanding of the local authority, without prejudice to the conditions of competition in the sector.
In addition to its subsidiary in Brazil, the American Tyson Foods sold to the Brazilian Group J&F, owner of JBS, the Mexican subsidiary Tyson Operaciones. The buyer, in this case, was another group company, the Pilgrim's Pride Corporation.
The horizontal overlap of activities that will result from the deal in Brazil includes slaughter of chickens in the southern States of the country. In the documentation delivered to Cade, JBS argued that the operation does not raise competitive concerns "given the low concentrations and the small increments" market share reached.
There will also be strengthening of vertical integration, however, "tiny" between, on the one hand, production of fresh meat and chicken, on the other hand, production and marketing of meat products such as sausages and hams, among others.