JBS terminates National Beef acquisition effort
February 20, 2009
by Keith Nunes
SAO PAULO, BRAZIL — JBS S.A., the owner of JBS USA, Greeley, Colo., has terminated its efforts to acquire National Beef Packing Company L.L.C., Kansas City. With the termination of the acquisition, all litigation related to the U.S. Department of Justice’s effort to block the acquisition because it was considered anti-competitive has been ended as well.
JBS S.A. entered into an agreement to acquire National Beef Packing on March 4, 2008. The D.O.J. filed a lawsuit to block the acquisition on Oct. 20, 2008, and the two sides had been working to resolve the issue ever since. Noting an inability to reach "satisfactory conditions" in the agreement, JBS S.A. opted to pull out of the acquisition.
"Although this is not the outcome we anticipated, we are excited to continue the growth and success of our business on a stand-alone basis," said Steve Hunt, chief executive officer of U.S. Premium Beef L.L.C., the majority owner of National Beef Packing. "As demonstrated by our fiscal year 2008 and first quarter 2009 financial results, National Beef’s value-added business model, rooted in strong relationships with cattle producers and beef customers, continues to generate industry-leading profits."