By Ana Mano 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
JBS Identifies Acquisition Prospects in Europe's Fragmented Meat Market
By Ana Mano
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, said 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," said Batista when asked 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, helping 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) because we have around 20% to 25% of the North American market for these three proteins," Batista said.
He noted the situation is similar in Brazil, making it unlikely for JBS to pursue acquisitions in the local processed foods segment, for example.
Batista also said during the panel discussion that the use of drugs like Mounjaro and Ozempic is boosting demand for protein around the world, which is positive for food companies in general.
Batista said 15 million Americans make frequent use of such weight-loss drugs, adding that no data is yet available to quantify the rise in meat demand tied to the use of these drugs.
(Reporting by Ana Mano in Sao PauloEditing by Matthew Lewis)
