09 December 2007

JBS SA (JBSS3.BR), Brazilian Beef

It looks like JBS has a meatpacking facility in Cuba and yet does business in the United States:

SAO PAULO (Dow Jones)--This week's deal between Brazilian beef company JBS SA (JBSS3.BR) and Italy's Cremonini affectively gives Brazil's top beef company a physical market presence everywhere but southeast Asia and the Middle East.

JBS, owner of Brazil's leading beef company, the Friboi Group, announced on Thursday that it had entered into a joint venture with Italian beef company Cremonini to acquire a 50% stake in Inalca, a beef producer wholly owned by Cremonini at the time.

The cost of the transaction was put at 225 million euros. It now gives JBS distribution in meat-packing facilities in Africa, Cuba, Europe and Russia, not to mention facilities already acquired by JBS in Australia, Argentina and the U.S.

If I understand the Economic Embargo, JBS will have to shed the Cuba facility or forego its access to US markets.

On the other hand, they sound pretty big. And the Bush cowards are only known for picking on little guys.