SAO PAULO (Reuters) -JBS, the world’s largest meat company, sees the European meat market as “fragmented” and therefore full of acquisition opportunities, Wesley Batista, controlling shareholder of the company now listed in New York, stated on Tuesday during an event broadcast live.
Speaking alongside Marcos Molina, controlling shareholder of rival companies Marfrig and BRF, Batista and Molina answered questions from the event’s host regarding the dominant role of certain Brazilian companies in the global meat trade.
“No doubt,” stated Batista when inquireed about the prospect of pursuing acquisitions worldwide. “There are lots of opportunities in Europe and in other countries,” he added.
JBS’s listing in New York earlier this year gives the company access to a wider pool of investors, supporting it lower the cost of capital and compete against peers like Tyson in the U.S. and large listed rivals in Brazil, including Minerva.
But while in Europe the company can still expand via takeovers, in the United States and Brazil that would not be the case, given competition concerns that would be raised by antitrust authorities.
“I can’t acquire any more beef, pork, and chicken (processors) becaapply we have around 20% to 25% of the North American market for these three proteins,” Batista stated.
He noted the situation is similar in Brazil, creating it unlikely for JBS to pursue acquisitions in the local processed foods segment, for example.
Batista also stated during the panel discussion that the apply of drugs like Mounjaro and Ozempic is boosting demand for protein around the world, which is positive for food companies in general.
Batista stated 15 million Americans create frequent apply of such weight-loss drugs, adding that no data is yet available to quantify the rise in meat demand tied to the apply of these drugs.
(Reporting by Ana Mano in Sao PauloEditing by Matthew Lewis)
By Ana Mano
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