The USA arm of Brazilian based JBS has signed an agreement with XL Foods to manage one of its Canadian operations following the outbreak of E.coli contamination last month.

JBS USA says it will manage the XL plant but will not be assuming debt or liabilities of XL Foods, which is one of the largest producers of beef in Canada.

Brian Nilsson, co-chief executive officer of XL said in a company statement: "This action is another positive step to relicensing the XL Lakeside beef plant in Brooks, Alberta."

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