JBS competes to acquire the Middle East’s largest poultry company

JBS is in the race to acquire Al-Watania Poultry, the largest poultry producer in the Middle East. According to Bloomberg, the bidding process involves other major companies, such as Almarai Company, a food industry giant from the Kingdom of Saudi Arabia.

The bids were reportedly submitted separately by the companies and were not binding for the full acquisition of Al-Watania, according to Bloomberg sources.

A positive market reaction was already expected by Goldman Sachs, which commented on the potential deal. “Over the years, JBS has demonstrated a consistent approach to capital allocation, focusing on both organic and acquisitive growth, and we believe the Middle East could be an opportunity to accelerate growth and diversify demand,” they stated.

The potential sale of Al-Watania has also attracted other interested companies, such as Saudi-based Tanmiah Food Company and a consortium led by MHP, a Ukrainian agritech company, both of which also submitted separate bids.

According to Bloomberg, BSF Capital is acting as an advisor for any potential transaction. Al-Watania has been exploring possible sales since late last year in a deal that could reach up to 2 billion riyals (US$ 533 million).

Goldman Sachs noted that Al-Watania is the largest poultry producer in Saudi Arabia, with the capacity to slaughter 1 million birds per day and process an additional 1.5 million eggs daily. The bank estimates that this capacity represents approximately 20% of the country’s total poultry consumption and is equivalent to around 20% of Seara’s capacity.