Brazil-JBS-Friboi considering mergers.

BRAZIL-JBS-FRIBOI.

JBS S.A. is open to considering mergers with Brazilian meatpackers that are struggling to survive amid an economic crisis, according to local newspaper Valor Economico.

"We are open to listening to proposals from meatpackers that would fit into our strategy and our philosophy," JBS’s Jose Batista Jr. was quoted as saying.

The comment aligns with that of JBS CEO Joesley Batista, who wrote in the company’s latest earnings report that the company would "govern by caution" in 2009 but be "vigilant toward investment opportunities which could add value to our balance sheet."

JBS recently announced that some of its Brazilian beef plants would increase production as its competitors falter amid sharp drops in export business and credit. Earlier this week, Independencia S.A., the country’s fifth-largest beef company, filed for Chapter 15 bankruptcy protection.