JBS Gives Up on National Beef

Brazilian meat company JBS has given up on plans to acquire US-based National Beef Packing, a deal it had been working on since March. JBS blames the decision on litigation with the US Department of Justice, which had filed a suit to block the transaction in October, citing competition issues. The company also says it will have to pay a $25m break-up fee to National Beef and that it will use cash to cover this. JBS has spent more than $700m on international acquisitions this year, and faces about $1.4bn in maturing debt in 2009. Investors were apparently happy about the deal’s termination, as JBS stocks rose by almost 4% to BRL4.64 February 20. JPMorgan advised the buyer.