Brazil's JBS abandons US National Beef takeover

Brazil's JBS (JBSS3.SA), the world's largest beef producer and owner of JBS-Swift, has abandoned its attempt to take over U.S. meat company National Beef Packing Company LLC, saying it could not work out an agreement with U.S. authorities over terms of the deal. JBS became the No. 3 U.S. beef producer in 2008 when it bought the beef operations of Smithfield Foods Inc (SFD.N), which included beef plants and the Five Rivers Ranch cattle feeding operation. At that time it also tried to buy National Beef in a deal valued at $970 million in cash, stock and debt. Since then, the Brazilian company has been in talks with the U.S. Justice Department about selling assets in order to gain approval to buy National Beef. But JBS said U.S. authorities insisted it sell two of its eight North American units so that it did not surpass the size of U.S. food giants Tyson Foods Inc (TSN.N) and Cargill Inc, after which "it decided not to go forward with the acquisition." "We fought hard but unfortunately the Department of Justice wanted to keep us the same size as Tyson and Cargill," said JBS President Joesley Mendonca Batista...Reuters