The European Commission has approved the acquisition of the UK poultry processor, which is currently owned by Brazilian firm Marfrig Global Foods, in a deal worth $1.5bn (£944.7M).
Global meat producer JBS has activities in various countries but Moy Park mainly supplied poultry in the UK and Ireland, a Commission statement said.
Verdict from European Commission
“The Commission concluded that the proposed acquisition would raise no competition concerns.”
- Statement from the European Commission
“The commission concluded that the proposed acquisition would raise no competition concerns because of the parties’ limited market shares and the small market share increments brought by the transaction,” it said.
“Numerous alternative suppliers will also continue to be active in the markets concerned by the transaction.”
The sale was expected to complete in the third or fourth quarter of this year with JBS taking on Moy Park’s debt as part of the transaction.
The deal will allow JBS to grow its portfolio of prepared and convenience products with a high value-added portfolio.
‘Increasing beef exports’
At the same time it will mean that Marfrig will be able to focus on increasing beef exports from Brazil to Asia and the US.
Northern Ireland’s biggest employer has 14 sites across the UK and has 12,000 staff in the UK, France and the Netherlands
The poultry processor recently increased its output to 5M chickens a week, following a £170M expansion plan announced last year.
Meanwhile, in August Moy Park posted a 30% drop in pre-tax profit from £8.3M to £5.8M despite a 1.1% increase in revenues in the second quarter.
Moy Park at a glance
- 14 sites across the UK
- 12,000 staff in the UK, France and the Netherlands
- €1.5bn (£944.7M) sale to JBS