JBS seeks to widen meat processing, distribution network

JBS SA, the world's biggest beef producer, may seek acquisitions in Europe and Asia to process and distribute meat as it seeks to cut the cost of selling its products worldwide.

According to JBS investor relations director Jerry O'Callaghan, the acquisitions would be part of the company's five-year expansion plan and would boost profit margins.

JBS controls more than 10% of the world's beef market after about 30 acquisitions since 1993, including Swift & Co. in 2007, Smithfield Foods Inc.'s beef business last year and Pilgrim's Pride Corp. In September, it planed a US$2 billion convertible-bond sale and a US$2 billion initial public offering of shares in its US unit to fund the acquisitions.

The meat producer aims to sell 60% of its products through its own network, O'Callaghan said.