This follows Australian Competition and Consumer Commission (ACCC) decision on 6 July, not to oppose the joint venture.
Brad Teys, CEO of Teys Bros, said: “We are pleased with the regulatory approvals, as this joint venture ensures the new company has the depth and scale to provide growth opportunities for Australian cattle producers by driving efficiencies through all parts of the business and providing greater access to domestic and international markets.”
The new company will be a 50-50 joint venture and trade under the name of ‘Teys Australia – A Cargill Joint Venture’.
Board representation will be shared equally by Cargill and Teys. Allan Teys will be chairman and Brad Teys will serve as the CEO in the new company. Geoff Teys will be responsible for cattle procurement. The company’s head office will be located in Beenleigh, Queensland.
The new joint venture will include the assets of both companies’ existing beef processing and cattle feeding businesses, Teys’ tannery and value-adding facilities, and Teys’ share of its wholesale divisions. The joint venture will have the capacity to process 1.5m head of cattle per year.
Source: Cargill
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