JBS sets out plan to form global leather group with Viva
Food and tannery group JBS has signed a binding memorandum of understanding with Vanz Holding and Viposa to create a new leather company that will bring together the hides businesses of both groups.
The agreement, approved by the JBS board, covers the combination of production and marketing assets currently operated by JBS and Viva S.A. The new organisation will operate under the name JBS Viva.
Ownership will be split evenly. JBS S.A., through a wholly owned subsidiary, will hold 50 percent, while the Viva shareholders will hold the remaining 50 percent. Governance will follow the same balanced structure. JBS will nominate the chair of the board and the chief financial officer. The Viva shareholders will nominate the chief executive and the chief operating officer.
According to the announcement, JBS Viva will process more than 20 million hides each year. The group will have 31 factories and a workforce of more than 11,000 people across Brazil, Italy, Uruguay, Argentina, Mexico, and Vietnam. Its activities will include hide processing and supplying some of the most selective global markets. The partners say the merger will strengthen international reach and competitiveness.
The agreement remains subject to the negotiation of final documents and to standard regulatory and contractual conditions.
