MinterEllison and A&O Shearman have advised on meat processing giant JBS Group’s joint venture with Danantara Investment Management (DIM) for a stake in the Brazilian company’s Australia and New Zealand operations.
Under the agreement, DIM, the investment arm of Indonesia’s sovereign wealth fund, will invest USD2.5 billion for a 25% stake in JBS’ operations in Australia and New Zealand. A&O Shearman said the investment would begin with USD800 million for a 9.64% stake, followed by a further USD1.7 billion commitment over three years.
The investment would support JBS’ Southeast Asian operations, strengthen regional supply chains and contribute to the development of the meat processing and protein industries in Indonesia, global firm A&O Shearman said.
MinterEllison said that, in addition to the initial USD2.5 billion, JBS and DIM would look to invest another USD2.5 billion across Indonesia, Australia, New Zealand and Southeast Asia through acquisitions, greenfield investments and other growth opportunities.
MinterEllison advised JBS on compliance with Australian foreign investment and competition law, as well as New Zealand Overseas Investment Office regulations. Partner Michael Scarf led the team, which included board chair Katrina Groshinski, Indonesian practice group leader Ryan Tjahjono, lawyer Anna Gallop, senior associates Alex Beagley, Thomas Galloway and Danica Smith, and associate Stephanie Hanna.
“This makes the transaction one of Danantara’s most significant international investments since its establishment … Danantara brings substantial Indonesian capital and Indonesian market knowledge, while JBS brings global protein product, operating, processing and supply chain expertise,” Scarf told Asia Business Law Journal.
He said the partnership also created a wider regional protein platform and represented a practical application of the Australian government’s Southeast Asian Economic Strategy.
A&O Shearman advised DIM, with partner James Mythen spearheading the team. He was supported by partner Daniel Harris, and senior associates Mindy Yap, Claire Lye and Calvin Koay.
