January 30, 2009
JBS, National Beef merger hearing postponed again
The court hearing on the US Justice Department's effort to prevent Brazilian beef company JBS from buying US-based National Beef Packing was postponed again on Thursday (Jan 29).
The hearing had been rescheduled for March 6. Thursday's hearing was itself postponed from January 16, as settlement talks proceed.
The Justice Department, along with 13 states in the US, filed a lawsuit in October 2008 to prevent JBS from buying National Beef, the fourth largest US beef producer. They argue that the deal would lower prices for cattle producers and push up beef prices for consumers.
The Justice Department approved JBS' purchase of the beef operations of Smithfield Foods Inc., following its 2007 purchase of US-based Swift & Co.
A successful merger would make JBS the largest beef producer in the US, surpassing Tyson Foods Inc., according to industry sources.
