Brazilian Co. Buying US Beef Processors

uscitizen

uscitizen

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Brazilian Co. Buying US Beef Processors

Wednesday March 5, 7:02 AM EST

KANSAS CITY, Mo. (AP) — National Beef Packing Co., the nation's fourth-largest beef processor, said Tuesday it is being acquired by Brazilian giant JBS SA in a cash and stock deal worth $560 million. JBS also said it plans to buy Smithfield Food Inc.'s beef business to form the largest meat processor in the U.S.

Kansas City-based National Beef said JBS, the world's largest beef processor, will pay National Beef members about $465 million in cash and $95 million in JBS shares. Under the deal, which still requires regulatory approval, JBS will assume an undisclosed amount of National Beef's debt.

JBS directors approved the acquisition Tuesday and also OK'd plans to buy Smithfield Beef Group Inc. for $565 million in cash, according to minutes of a board meeting posted on JBS' Web site.

It was unclear whether Smithfield had agreed to the deal. Messages seeking comment were left for Smithfield Foods representatives late Tuesday.

Virginia-based Smithfield Foods is the country's fifth-largest beef producer. Combined with JBS' $225 million acquisition of Greeley, Colo.-based Swift Foods Co. last year, the National Beef and Smithfield Foods deals would make JBS the largest meat processor in the U.S., ahead of Cargill Meat Solutions.

http://finance.myway.com/jsp/nw/nwdt_rt.jsp?section=news&feed=ap&src=601&news_id=ap-d8v78oso0&date=20080305
 
The low dollar seems to be accelerating the selling off of America.
Kinda like the world shopping at Big Lots.
 
Interesting to note that none on here seemed concerned about foreign corps controlling our food supply.
I guess all the global corporate brainwashing has worked very well.
 
I thought a decreased trade deficit was a good thing US?

Wasn't it the bad thing for America to be buying from other nations, who were stealing our money?
 
I think we should control our own food supply.
Just one of the basics of having a country that can stand on it's own.

But I guess the repubs have it right what is good for a brazillian corp is good for the country.
 
uscitizen said:
I think we should control our own food supply.
Just one of the basics of having a country that can stand on it's own.

But I guess the repubs have it right what is good for a brazillian corp is good for the country.
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Isolate ourself citizen. We better hide it's a big bad world out there.
 
uscitizen said:
I think we should control our own food supply.
Just one of the basics of having a country that can stand on it's own.

But I guess the repubs have it right what is good for a brazillian corp is good for the country.
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Who is "we?"

I don't see a US corporation being any better or worse than a Brazilian corporation simply by virtue of it being a US corporation.
 
What happens in a time of conflict with Brazil ?
also could this be a way to move cheaper less regulated brazillian beef into the USA, replacing the US supply ?
 
uscitizen said:
What happens in a time of conflict with Brazil ?
also could this be a way to move cheaper less regulated brazillian beef into the USA, replacing the US supply ?
Click to expand...


Well, the Brazilian government isn't running the operation is it? I assume that the Brazilian corporation would continue to run its operations normally because that is how they make money. I fail to see how it is in their interest to do anything that would hurt their business because the countries were in conflict. Worse case scenario is that the US government takes control of the plant. What's Brazil going to do about it?

As for replacing Brazilian beef with US beef, if it happened it would probably be an improvement.
 
I have no qualms with Brazillian beef or beef processed in Brazil by Brazillians. Given the latest fiasco I wouldn't be surprised if they have a better beef supply than we do. What I do have a problem with is our continued use of products made in China which has an established history of having very little if any oversight on their products as it relates to the health of the consumer.
 
Dungheap said:
Well, the Brazilian government isn't running the operation is it? I assume that the Brazilian corporation would continue to run its operations normally because that is how they make money. I fail to see how it is in their interest to do anything that would hurt their business because the countries were in conflict. Worse case scenario is that the US government takes control of the plant. What's Brazil going to do about it?

As for replacing Brazilian beef with US beef, if it happened it would probably be an improvement.
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QFT - have you been to Texas de Brazil?!

Good stuff. Bring it on!:clink:
 
LadyT said:
I have no qualms with Brazillian beef or beef processed in Brazil by Brazillians. Given the latest fiasco I wouldn't be surprised if they have a better beef supply than we do. What I do have a problem with is our continued use of products made in China which has an established history of having very little if any oversight on their products as it relates to the health of the consumer.
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Chinese corporate investment in the US is a whole 'nother ball game. Any time you have a foreign corporation with foreign government shareholders investing heavily in the US you have a problem. That just doesn't seem to be the case here.
 
Dungheap said:
Chinese corporate investment in the US is a whole 'nother ball game. Any time you have a foreign corporation with foreign government shareholders investing heavily in the US you have a problem. That just doesn't seem to be the case here.
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I agree.
 
uscitizen said:
So it depends on who the foreign owners are ?
Interesting...
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It depends on their track record, controls, proliferation and established health regulations. I don't know Brazil's beef industry to have any more issues than our own beef industry. Its only the 4th largest beef processer and it would appear that I still have other options should I hear otherwise.
 
uscitizen said:
So it depends on who the foreign owners are ?
Interesting...
Click to expand...


Private citizens/entities vs. government/government entities is the distinction. The Chinese government generally controls most Chinese Corporations (although to a lesser degree than previously). They are (or were) state-owned enterprises.
 
China is even more capitalistic than the US in many respects.
Like very little govt oversight for one thing. No OSHA and very little EPA type of things for instance.
 
Watermark said:
China is Adam Smith's dream world. It's just ridiculous to even consider them communist anymore.
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While China has opened up its economy the government is still very much involved. We've set up several real estate investment funds in China over the past few years and the amount of red tape we've had to go through is anything but Adam Smith's dream.
 
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