The transaction will be finalized after receiving approval from Brazil's antitrust authority, CADE.
JBS announced on Monday morning (January 27) the acquisition of 50% of Mantiqueira, marking the world’s largest beef company’s entry into the egg segment. The deal’s completion is still subject to approval from Brazil’s Administrative Council for Economic Defense (Cade).
This agreement brings together two industry leaders. JBS dominates the global beef market, while Mantiqueira is the largest player in the egg market in South America. With an annual revenue of around R$ 2 billion (approx. $339 million), Mantiqueira operates in six Brazilian states, employs 3,000 people, houses 17.5 million hens, and produces 4 billion eggs annually.
Unlike its new partner, Mantiqueira is not a global leader; it ranks 10th worldwide. However, JBS holds significant potential to expand in both the domestic market and internationally.
Discussions about a possible partnership between the two companies initially focused on the potential for collaboration in the U.S. market.
“The decision to enter this new business is, first and foremost, based on its attractiveness. It’s a lucrative business with global potential,” said JBS Global CEO Gilberto Tomazoni in an interview with Valor Econômico. “Everyone eats eggs.”
He added that the egg segment’s appeal includes strong growth, high penetration across all consumer demographics, and nutritional benefits—now, eggs, once considered diet villains, have become staples in nutritionists’ recommendations. Additionally, Tomazoni noted that eggs “enhance JBS’s presence on the breakfast plate.”
The decision to partner with Mantiqueira, rather than other companies in the segment, was partly influenced by Mantiqueira’s leadership position. “We only enter a business to be leaders,” said Tomazoni. He also noted that an “alignment of values” between the two companies was key to JBS taking a non-dominant position in Mantiqueira—an exception for the group, which usually takes controlling stakes in its acquisitions.
“We are leaders in Brazil, and with JBS on board, we’ll have better access to market opportunities and gain the necessary expertise to become a relevant competitor abroad. This partnership is a milestone in our strategic plan, which has always aimed to expand into new markets alongside organic growth,”
said Mantiqueira’s founder, Leandro Pinto.
Mantiqueira currently exports to South America, Asia, Africa, and the Middle East.
After the agreement, Mantiqueira's leadership will stay unchanged. CEO Márcio Utsch, who has been in the role for nearly two years and holds a 3% stake, will continue in his position. JBS and Mantiqueira are now deciding whether the board will have four or six members, with Pinto remaining chairman.
Source: Globo Rural