JBS and Viva are merging in the name of leather. The result is the Brazilian super-group JBS Viva: 31 facilities and more than 11,000 employees across Brazil, Italy, Uruguay, Argentina, Mexico and Vietnam. The new company will process over 20 million hides a year. Here are the terms and reactions surrounding the deal, which is set to reshape the market’s dynamics and balance of power.
JBS and Viva merge in the name of leather
The new company, JBS Viva, will be owned 50% by JBS and 50% by Viva’s shareholders — the latter formed two years ago through the merger of tanneries Viposa and Vancouros-Vanz. The agreement establishing the new entity remains subject to various conditions, including the signing of definitive contracts and approval from the relevant authorities. For now, the parties have signed a binding memorandum of understanding through which JBS and Viva’s shareholders have agreed to combine the assets of both companies relating to leather production and commercialisation. JBS will appoint the chair of the board and the chief financial officer of JBS Viva, while Viva’s shareholders will be responsible for appointing the CEO and chief operating officer of the new company. According to JBS, the new entity will process more than 20 million hides per year, operating 31 sites and employing over 11,000 people.
Photo: Shutterstock
Read also:
