UNITED STATES.
JBS-SIFT CASE POSTPONED.
The legal action that was brought by the Department of Justices, against Brazilian beef giant JBS-Swift, was to have been heard in court two weeks ago.
The matter was adjourned in order for both parties to try and seek a compromise or solution, bearing in mind the initial news of the takeover was before the wheels came off the economy.
The matter was set down forlast Friday but now has been adjourned to 29 January.
Had the deal gone through, this would have made JBS-Swift the largest beef packers in the United States, the company are already the largest beef processors in the world, handling 80,000 cattle per day.
There could be a solution we are informed, if the company were to relinquish there Five Rivers beef fattening complex, which houses 800,000 cattle.This may than reduce market share to an acceptable level, which could overcome the monopoly fears of the government.
There has been a lot of misleading information in the media over the takeover, and resentment from within the industry which appears to be sour grapes or for want of a better word jealousy.
JBS are cash rich and should the deal proceed it will be a cash deal. The economic downturn and the shortage of credit, along with a new government would appear to be favorable to JBS-Swift in today’s market place.