SÃO PAULO, Brazil – The European Commission approved JBS SA’s acquisition of poultry processor Moy Park Holdings Europe Ltd. from Marfrig Global Foods SA. The transaction is valued at $1.5 billion.
The EC ruled that the acquisition posed no threat to competition because the companies have limited market share, and other processors will continue to operate in markets affected by the merger. Moy Park specializes in fresh poultry production with sales mainly in the United Kingdom. The company also has been expanding its offerings of convenience foods.
Jerry O’Callaghan, investor relations director for JBS, said during a call with analysts on June 23 that 73 percent of Moy Park’s sales in the UK and Ireland are in the retail space, while foodservice accounted for 14 percent of sales. Across Europe, 78 percent of its sales are in the foodservice category, and 22 percent are in the retail segment.
Moy Park’s customers include major food retailers such as Tesco, ASDA, Sainsbury’s and Waitrose in addition to foodservice operators including McDonald’s, Yum! Brands’ KFC and Pizza Hut, and Burger King.
