CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Moy Park sold to Brazilian food group

Article By: ,  Financial Analyst
June 22, 2015 6:36 PM

Moy Park, the UK's largest poultry producer, has been sold to JBS S.A., a Brazilian food group, for $1.5 billion (£945 million).

Headquartered in Craigavon, Moy Park has been owned my Marfrig Group, another Brazilian-based company since 2008.

According to the Belfast Telegraph, the purchase came as a shock – experts thought Marfrig planned to float Moy Park on the London Stock Exchange.

The purchase is expected to be completed in the second half of 2015 and is subject to approval from European Union antitrust authorities.

Jeremiah O'Callaghan, an investor relations officer at JBS S.A., said in a statement: "The Moy Park acquisition was valued at $1.5 billion (£945 million), adjusted by the working capital variation, as well as by the det debt of the Moy Park business at the conclusion of the transaction, which includes £300 million in Notes due in May 2021. The balance will be paid in cash at the conclusion of the acquisition."

Moy Park is currently the largest employer in Norther Ireland, providing jobs to 8,473 people. Last year, its pre-tax profits rose by 39 per cent to £33.7 million.

JBS expanding

The Brazilian buyer has been working to expand its international operations for many years. In 2007, JBS S.A. moved into North America. The purchase of Moy Park will be its first step into Europe.

Mr O'Callaghan said that this step is an important part of the company's overall strategy.

"This transaction represents an important step in JBS's strategy to grow its portfolio of prepared and convenient products with high value added," he said.

He added that the acquisition will increase the company's geographic diversification.

"JBS management will keep the market informed about the development of this transaction until its conclusion, which is projected to happen in the second half of this year," he explained.

Reducing debts

Marfrig has said that its reason for selling Moy Park was to reduce debts. The company now plans to focus on its operations in the US and Asia.

​"The sale of Moy Park will enable Marfrig to have a greater focus in pursuing growth opportunities," the company said.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024