According to newspaper O Globo, an agreement between the two companies is being negotiated

01/16/2024

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Leandro Pinto — Foto: Divulgação

The possible acquisition of the Mantiqueira Group, one of the country’s largest egg producers, by JBS, as reported by daily newspaper O Globo, is a strategic move that aligns with JBS’s multi-protein strategy, according to analysts and industry sources.

Negotiations between the two companies are currently underway, as reported by journalist Lauro Jardim in his Sunday column. Notably, in such discussions, there is a possibility that Mantiqueira’s founder, Leandro Pinto, may retain a partnership in the company even following the sale.

When contacted by Valor, Mr. Pinto refuted the information, while JBS was not immediately available for comment.

An insider disclosed that rumors about JBS’s interest in Mantiqueira began circulating in mid-December. In the insider’s opinion, Mantiqueira has been signaling its readiness for a potential acquisition, citing its acquisition of Toca Orgânicos, investments in cage-free production, and the rebranding of the Mantiqueira label as Happy Eggs.

“In the past three years, if you observe Mantiqueira’s actions, it appears that Leandro [Pinto] is dressing up the bride. On the other side, there seems to be a groom in need of a partner,” commented the insider.

In an initial evaluation, Leonardo Alencar, an analyst at XP Investimentos, expressed his belief that JBS’s acquisition of an egg company would be advantageous. Diversifying its protein offerings helps mitigate the impact of market fluctuations in each sector on the company’s financial performance. Additionally, it could open doors to a sector that thrives during periods of increased demand for affordable food and evolving global consumption patterns.

An industry source concurred that JBS’s potential entry into the egg sector would enhance its diversification, considering the company’s prominence in other protein markets. The source also noted that the global outlook for the egg segment appears highly promising.

However, the XP analyst pointed out that the acquisition of Mantiqueira alone might not significantly alter JBS’s overall trajectory. “It would only make sense if it were the first step in a larger strategy. Everything indicates that JBS aims to maintain financial prudence and focus on the dual listing process, which may not be the ideal time for acquisitions.”

Opinions differ on whether the recent termination of the agreement to sell a portion of Eldorado Celulose to the Indonesian group Paper Excellence could impact the potential acquisition in the short term. J&F Investimentos, the holding company of the Batista family, which controls JBS, announced the cancellation of the deal and the return of R$3.7 billion. Industry insiders suggest that Mantiqueira’s market value may fall short of the Batista family’s expectations.

*Por José Florentino, Nayara Figueiredo — São Paulo

Source: Valor International

https://valorinternational.globo.com/