JBS cleared for Primo takeover

The acquisition of smallgoods manufacturer and meat processor Primo by JBS will not be opposed by the Australian Competition and Consumer Commission (ACCC), the watchdog has announced.

Having reviewed a number of submissions, the ACCC concluded that the takeover would be unlikely to raise significant competition concerns. However, it said it is wary of the potential impact of further consolidation of abattoirs.

Many industry submissions expressed concern that the acquisition would result in less competition in the fat cattle market in northern NSW and Queensland.

“The ACCC undertook a detailed assessment and determined that Primo is currently not a strong competitive constrain on JBS. JBS’s abattoirs in Queensland and Primo’s abattoir at Scone are more than 500 km apart,” said ACCC Chairman Rod Sims.

“Furthermore, the increase in market share as a result of the proposed acquisition would be relatively small and JBS would continue to be constrained in the market for the acquisition of fat cattle by a number of alternative abattoirs and supermarket chains in the northern NSW and southern Queensland region.

“The ACCC will continue to monitor this industry and any future acquisitions will face additional scrutiny.”

The ACCC also considered whether the acquisition would have any competitive impact on meat or smallgoods customers or the provision of fat cattle service kills. It concluded that it does not raise any significant competition concerns.