Huon acquisition gets green light from regulators

The takeover of Tasmanian salmon farmer Huon Aquaculture by Brazil’s JBS is one step closer following the announcement by Australia’s Foreign Investment Review Board (FIRB) that it has no objections to the deal.

FIRB’s review of the proposed acquisition, which the Huon board supports, was part of the required approval process.

JBS is a multinational meat processor, based in Brazil but with interests in Australia already. Its bid, announced in August, values Huon at around A$550m (£300m) and it is offering shareholders $3.85 per share.

A potential alternative bid from Australian businessman Andrew Forrest – who had criticised the JBS deal as a backward move for animal welfare and the environment – in the end failed to materialise, despite Forrest’s investment vehicle Tattarang taking a significant stake in Huon.

Huon Chairman Neil Kearney said: “The FIRB decision is another important step in securing the future of Huon, our 800-plus employees and the hundreds of Tasmanian businesses that work with our company.

“In addition to its commitment to work with the busines and our people, JBS has committed to maintaining our world-leading farming practices to support long-term sustainable growth.

“Huon has established the highest standards of animal husbandry, biosecurity, environmental management and sustainable farming practices and JBS will continue this uncompromising approach.

“Importantly, JBS also has the proven skills and expertise to access new international markets for Huon’s premium products.”

Although it has the support of the board, and founders the Bender family, the takeover is not yet a done deal and it will need to gain the support of shareholders. As the Benders own 12% of the equity and JBS has already acquired 40%, approval looks likely, however.

The company’s AGM will be held this Friday, 29 October and shareholders will be voting throughout the week leading up to the meeting.