SYDNEY: JBS SA’s plan to acquire Australia’s Huon Aquaculture Group may be under threat after mining magnate Andrew Forrest amassed a stake large enough in the salmon producer to potentially block the deal.

       Forrest and his family office increased their holding in Sydney-listed Huon to 18.5% from 7.3%, according to an exchange filing.

       The investment underscores the progress Huon has made in improving environmental practices in an industry with a “dreadful” reputation, Forrest said in an interview.

       The move could challenge JBS’s plan to acquire Huon as a way to expand into the fish business.

       The Sao Paulo-based meat giant announced the US$314mil (RM1.33bil) deal last week, saying it has the backing of the majority shareholders and is set to be completed by year-end following approval by Australian authorities.

       “We were always happy to continue investing in Huon,” Forrest told Bloomberg News. “When JBS came in, it accelerated the urgency because we know JBS – because we’re in the cattle industry.”

       Known as the billionaire founder of iron ore giant Fortescue Metals Group, Forrest has become increasingly active in agribusiness in recent years, buying pastoral stations and one of Western Australia’s biggest meat processors, Harvey Beef.

       With a PhD in marine science, he’s also made a push into aquaculture, acquiring oyster farming operations in Albany, Western Australia, last year and focusing much of his foundation’s work on ocean conservation, tackling issues like overfishing and plastics pollution.

       Forrest wants JBS to commit to improved environmental and animal husbandry standards, both in salmon farming and in JBS’s extensive meat farming operations. — Bloomberg