JBS N.V. and Viva signed a binding memorandum of understanding on November 25, 2025 to merge their leather production and commercialization assets into a single 50‑50 joint venture, JBS Viva. Under the agreement, JBS will appoint the chairman and chief financial officer of the new entity, while Viva’s shareholders will select the chief executive officer and chief operating officer.
The merger will create a leather platform capable of processing more than 20 million hides per year, a scale that positions JBS Viva among the world’s largest leather manufacturers. While the deal value has not been disclosed, the combined entity will leverage JBS’s extensive hide supply from its meat‑packing operations and Viva’s established processing capacity to achieve significant cost efficiencies and broaden market reach.
Strategically, the transaction allows JBS to monetize hides that would otherwise be a by‑product of its protein business, while Viva gains secure upstream raw material access and a wider international distribution network. The partnership is expected to streamline supply chains, reduce inventory holding costs, and enable both companies to invest in sustainability initiatives such as JBS’s “Kind Leather” program.
JBS’s Q3 2025 earnings, released on November 17, provided context for the merger. The company reported earnings per share of $0.52, beating consensus estimates of $0.51 by $0.01 (1.96%) and revenue of $22.6 billion, surpassing the $22.0 billion forecast by $0.6 billion (2.73%). The beat was driven by strong performance in the prepared‑foods segment and new pork‑processing plants, which offset headwinds in beef and chicken markets.
Market reaction to the merger announcement was positive: JBS shares traded up 1.5 % in pre‑market trading on November 26, reflecting investor confidence in the strategic fit and the expected synergies of the joint venture.
Management emphasized disciplined capital allocation and a solid balance sheet. JBS’s chief financial officer noted that leverage is expected to remain below 2.5× by year‑end, and the company remains confident in sustained global protein demand, underscoring the long‑term value of the leather platform.
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