SAO PAULO (Reuters) -Brazilian meatpacker JBS said on Tuesday it had signed a binding memorandum of understanding with the shareholders of Viva to combine both firms' assets related to leather production and commercialization.

In a securities filing, JBS said the new company will be called JBS VIVA and will be owned 50% by JBS and 50% by Viva's shareholders -- Vanz Holding and Viposa.

The company will process more than 20 million leathers per year, with 31 factories and over 11,000 employees, JBS said, adding that the deal still lacks conditions including the signature of definitive agreements.

JBS will name the chairman and the Chief Financial Officer of JBS VIVA, while Viva's shareholders will appoint the Chief Executive Officer and the Chief Operating Officer, according to JBS.