Danantara makes USD2.5 billion investment into JBS Australia

Danantara will invest USD800m for an initial 9.64% stake, with a commitment to invest a further USD1.7bn for 25% over three years.  The strategic partnership reflects growing investor confidence in the Asia-Pacific protein sector. The investment is earmarked to fund the expansion of JBS’s operations across Southeast Asia, as well as enhancing regional supply chains and developing the meat processing and protein sectors in Indonesia.

This transaction is one of Danantara’s earliest major investments outside Indonesia and its largest transaction to date, reinforcing its position as a leading cross-border sovereign investor and strengthening economic ties between Australia and Indonesia.

“This investment reflects the increasing role of sovereign capital in shaping global food supply chains, underscores the depth of cross-border collaboration between Indonesia and Australia and the strategic importance of access to sustainable food and nutrition in the ASEAN region,” said James Mythen, partner at A&O Shearman. “Managing the complexity of an investment into a regulated multi-jurisdictional business that is subject to a pre-sale carve out required significant coordination across our network and an innovative approach to legal and commercial issues.”

The A&O Shearman team was led by James Mythen (partner, Singapore), supported by Mindy Yap (senior associate, Singapore), Claire Lye (senior associate, Singapore), Daniel Harris (partner, Sydney), and Calvin Koay (senior associate, Sydney), with additional support from a broader multi-disciplinary team across the Netherlands, New Zealand, the United States, the UK, and certain other key jurisdictions.

A&O Shearman continues to advise on market-defining transactions across the Asia-Pacific region, leveraging its global platform and sector expertise to deliver solutions for clients navigating complex cross-border investments.