The protracted $500m bidding war for an Aussie supermarket staple faces a final hurdle, with the Federal Court set to have the last say.
The controversial buyout of an Aussie supermarket favourite is pretty much in the bag after a months-long tussle between a global food giant, a local rich lister, environmentalists and a workforce craving some kind of security.
Brazilian meat processor JBS has all but reeled in Aussie salmon farmer Huon Aquaculture, with the Federal Court expected to approve the South American company’s $500m off-market takeover on Wednesday.
Huon sells a range of popular fresh, cured, and roasted salmon products through supermarket delis and is also known for its ocean trout, caviar, and fish skin pet treats.
But the ASX-listed firm, which started as a Tasmanian family business in 1986, is set to come under foreign control, with an impending JBS buyout seemingly locked by Huon shareholders on Friday.
The 99.7 per cent investor vote in favour of the Brazilian takeover comes after the Foreign Investment Review Board last week gave its blessing, even as environmental groups remain steadfast in their displeasure.
These eco-anxieties revolve around JBS’ perceived environmental record across its global agriculture network, with groups including the Bob Brown Foundation questioning the company’s suitability for an industry that is already under fire in Tasmania for its ecological footprint.
Environmental and animal welfare concerns were also at the heart of a high-profile move by local mining magnate and key Huon investor Andrew “Twiggy” Forrest to scupper the deal.
Mr Forrest made a splash when his Tattarang investment vehicle in August increased its stake in Huon to above 18 per cent as part of a parallel campaign to wrest control of the company, demanding JBS firm up its environmental bonafides.
Tattarang’s concerns, however, appear to have been allayed before Friday’s shareholder vote, with Mr Forrest’s company voting in favour of the JBS takeover.
JBS, for the record, has repeatedly sought to underline its environmental credentials and on Tuesday said it “reconfirmed its unequivocal commitment to animal welfare and environmental sustainability globally”.
“We also take this opportunity to confirm that JBS SA supports the principle of ‘no pain, no fear’ animal welfare across its global operations,” the company said.
Huon on Friday said the JBS takeover would help secure the future of the company and its 800-plus workers following a difficult financial year.
Huon lost $128m in 202-21 amid soaring freight costs, damage to its pens, and the disappearance of tonnes of product in NSW.
Shares in the company were last trading at $3.72, below the $3.85 per share offer from JBS.
Originally published as Brazilian food giant JBS on the cusp of owning Australia’s Huon Aquaculture in $500m deal
Source: Sun Herald
