Rivalea Holdings: JBS buys another Australian business

One of the world’s largest meat processing companies has further expanded its footprint in Australia, following a watchdog decision.

JBS Australia will purchase Rivalea Holdings, following a recent ACCC decision.

JBS Australia’s footprint in Australia has increased in size yet again, as the company is given the green light to buy 100 per cent of Rivalea Holdings Pty Ltd and Oxdale Dairy.

But the decision has disappointed one small scale pork producer, who remains sceptical the company won’t shut-out smaller producers.

In a statement, the Australian Competition and Consumer Commission said the acquisition by Brazilian-owned JBS, valued at $175 million, could go ahead, finding “the transaction is not likely to substantially lessen competition”.

Jonai Farms owner and pig producer Tammi Jonas said she was “disappointed” in the ACCC’s decision.

“It’s just awful. JBS has been acquiring properties all year, and it’s the same in America,” Ms Jonas said.

“Someone should be checking very closely how much of the meat processing sector they do own.”

JBS at present owns one pig abattoir and processing facility in South Australia.

According to its website, JBS Foods boasts 47 locations Australia-wide, including

Rivalea is the majority owner of the Diamond Valley Pork abattoir and processing facility in Laverton Victoria, and another abattoir and processing facility in Corowa New South Wales.

Rivalea Holdings is not the only agricultural business snapped up by JBS Australia in recent months: in November the company purchased Tasmanian-based Huon Aquaculture in a deal worth $549.87 million.

ACCC deputy chair Mick Keogh said the investigation into the proposal – which focused on the impact of the acquisition on service kill customers at Diamond Valley Pork – remedied concerns for market share and competition.

“The ACCC found that the proposed acquisition is unlikely to substantially lessen competition in pork production and processing markets and therefore will not breach the Competition and Consumer Act,” Mr Keogh said.

“The ACCC closely considered the potential for JBS to frustrate or foreclose pork producers and wholesalers’ access to third-party service kills and competing smallgoods manufacturers’ access to fresh pork. In particular, we paid close attention to concerns raised by pig producers about their ongoing access to service kills.”

A statement published by JBS Australia welcomed the ACCC decision.

“Over a period of six months, JBS has engaged and worked constructively with the ACCC and key customers and stakeholders to assure them that JBS intends to have a business as usual approach to the Rivalea operations,” according to the statement.

The acquisition remains subject to Foreign Investment Review Board approval.