March 7, 2011

JBS terminates possession in Italian beef business

JBS S.A. declared that it had come to a consensus with the Cremonini Group in Italy to terminate its 50% ownership in Inalca, its Italian beef processing joint venture with Cremonini.

JBS, headquartered in Sao Paulo, Brazil, and the largest beef processor in the world, entered into the venture four years ago. It was responsible for the financial reporting of the business while Cremonini held responsibilities for operations.

However, in recent quarters, JBS experienced what it referred to as considerable obstacles that Cremonini was putting in the way of reporting fully audited and verified results. In its most recent quarterly report, JBS said it was considering severing ties with Cremonini and it finally did so today (Mar 7).

As part of the agreement, JBS said it had returned shares representing its 50% interest in the company to Cremonini and Cremonini had returned the amount of JBS's investment in the company, EUR218.9 million (US$305.8 million).

Cremonini and JBS also agreed to abandon all disputes and litigation related to their companies, officers and employees, allowing both companies to move forward with their business activities.