Brazilian meat groups JBS and Bertin have reached an agreement to unify operations, the companies revealed today (16 September).

According to current estimates, JBS said it will control approximately 60% of the new enterprise, while Bertin will hold the remaining 40%.

The controlling shareholders of JBS – J&F Participações and MF Fundo de Investimento em Participações – have agreed to establish a holding company which will hold all of JBS’s shares, while Bertin will contribute shares representing 73.1% of Bertin’s capital.

The parties are currently analysing the best structure for an integration of the two companies’ operations, JBS said.

JBS is also currently in an “advanced process” of negotiating a US$2.5bn capitalisation through private subscription in JBS USA Holdings. The association agreement formed between Bertin and JBS is subject to approval from JBS USA.

In addition, the deal still requires approval from Brazil’s antitrust authorities.

In a separate announcement today, JBS said that it intends to take a controlling stake in US poultry group Pilgrim’s Pride.