JBS to merge leather assets with Viva leather assets

In a regulatory filing, JBS (JBS) announced that, with the approval of its Board of Directors, it has entered into a binding memorandum of understanding with VANZ HOLDING LTDA. and VIPOSA PARTICIPACOES LTDA., current shareholders holding 100% of the shares issued by VIVA S.A. with the objective of forming a company to combine the assets related to the production and marketing of leather from JBS and VIVA. The new company will be a global player in the leather sector and will be named JBS VIVA. Once the transaction is completed, JBS VIVA will be 50% owned by JBS S.A., a wholly-owned subsidiary of the company, and 50% owned by the Viva Shareholders. JBS Viva will be managed by a Board of Directors with equal participation from JBS and Viva Shareholders. JBS will appoint the Chairman of the Board and the CFO of JBS Viva, while the CEO and the COO will be appointed by the Viva Shareholders. The completion of the transaction is subject to the negotiation of definitive documents and other conditions precedent common to this type of transaction.