Market Intelligence: JBS Viva can be “a structural turning point” for leather
Our final Market Intelligence report of this year went live on December 9. It highlights the potential significance of the proposed merger of Brazil-based leather manufacturing groups JBS Couros and Grupo Viva.
If the deal receives the necessary regulatory approval, the new entity, JBS Viva, will be a leather manufacturing group with more than 30 production facilities and the overall capacity to process more than 20 million hides per year.
Market Intelligence refers to the proposed merger as “an event of considerable significance” because the new entity’s vertical integration, financial strength and global reach “can have lasting effects on market structures”.
It points out that for smaller leather manufacturers, this could lead to increased competitive pressure because JBS Viva will be large enough to influence prices levels, and efficiency and quality standards across the board.
For manufacturers and brands that source leather, however, this development may bring “important benefits”, the report continues.
It concludes: “JBS Viva represents a structural turning point, one that extends far beyond the merger itself and is likely to reshape the dynamics of the global leather supply chain in the long term.”
Image: Viposa SA (one of the partner involved in the proposed JBS Viva merger).
