April 19, 2013
Brazilian authority approves JBS's leases and acquisitions
The Brazilian Anti-trust Authority (CADE) unanimously approved all 12 operations (between leases and acquisitions) made by JBS between 2009 and 2012 and which were submitted to the anti-trust authority for analysis.
As a result, all production units incorporated by JBS during this period in Brazil will continue to be administered by the company without any restrictions. Besides the approval of the totality of the operations, JBS also signed a Commitment Agreement (TCD) with the Authority whereby JBS guarantees that it will inform CADE regarding all future operations, large or small, including leases during the next 30 months.
Since the Anti-trust Authority interpreted that JBS may at times have acted in an untimely manner with regard to certain leases which were not submitted to the analysis of the Authority, CADE decided to levy a fine totalling BRL7.38 million (US$3.69 million) to JBS. The company hereby confirms that it will pay this fine.
The company understands that the decision by CADE is testament to the company's responsible commitment to the beef market in Brazil.
