JBS aims to become largest beef distributor by end of 2010

Brazilian meat processor JBS, the world's largest beef producer, said it aims to become the largest beef distributor by the end of 2010 and has been approached by companies seeking to be acquired.

CEO Joesley Mendonca Batista said the company is confident it could, by the end of next year, become the major producer and distributor of frozen products.

JBS became the world's top beef producer in 2007 after acquiring Greeley, Colorado-based Swift & Co. JBS further ensured its top position by purchasing the beef processing and cattle feeding operations of Smithfield Foods Inc.

JBS stopped making acquisitions and focused on reducing debt last year, but the company is now ready to buy distribution assets and is analysing offers from companies willing to be bought, Batista said.

He said the companies have been calling because of their confidence in JBS' financial muscle.

But JBS is not in formal negotiations with any companies yet, and are only listening to offers, he said.

Batista said the company is ready to take on debts again to finance its planned expansion. JBS sold US$700 million of five-years bonds in international markets in April. The yield of 13 percent, or 11.14-percent above US Treasuries, was more than double the premium of its last offering in 2006.