JBS SA will proceed with plans to list a U.S.-based unit when market conditions allow, as the world's No. 1 meatpacker wrestles with a shareholder revolt over the role of the controlling Batista family in a massive graft scandal. In a conference call to discuss second-quarter results, CEO Wesley Batista said JBS Foods International Inc could be listed by the end of next year, once parent JBS finalizes 6 billion Reais (US$1.9 billion) in asset sales to cut debt and restore investor confidence.
The Brazilian Congress will return from recess this week and could bring back political uncertainty fears to local markets, as lawmakers are set to decide on Wednesday if the Supreme Court should trial President Michel Temer for corruption. Temer was formally charged with passive corruption by the prosecutor-general Rodrigo Janot at the end of last month.
Brazil's top electoral court on Thursday excluded testimony of engineering company executives from an illegal campaign funding trial against President Michel Temer, a move that suggested it would throw out a case that had threatened to unseat him.
The Brazilian meatpacking giant JBS says it has sold its units Mercosur members, Argentina, Paraguay and Uruguay to companies controlled by a rival meat processing company in Brazil. JBS said in a Tuesday securities filing that it sold meat processing plants in the three countries for US$300 million to Minerva in Sao Paulo state.
Brazilian police have arrested Rodrigo Rocha Loures, a former congressman and close friend of President Michel Temer. Rocha Loures was seen in a video released in May carrying a bag with 500,000 Brazilian Reais (US$154,000).
J&F Investimentos, controlling shareholder of the world's largest meatpacker JBS SA,, agreed to pay a record-setting 10.3 billion real (US$3.2 billion) fine for its role in corruption scandals that threaten to topple President Michel Temer. The settlement meant Brazil's sweeping graft investigations have now led to the world's two biggest leniency fines ever levied, Brazilian prosecutors said.
Brazil's President Michel Temer faced calls for his removal Wednesday after a newspaper reported that he had been recorded discussing payments of hush money to a corrupt politician. Temer immediately denied the report in O Globo newspaper.
Brazilian police on Tuesday opened two separate investigations into whether certain food companies improperly received favorable treatment from the Agriculture Ministry, the latest probe ensnaring the powerful farming sector. The probes into whether inspection procedures were relaxed for meatpacking, dairy and other food companies come two months after industry leaders JBS SA and BRF SA were rocked by allegations of bribing food inspectors.
JBS SA, the world’s largest meat packer, has suspended production at 10 plants in Brazil. The action comes as the company works to rebound from the fallout of an anticorruption investigation launched by the Federal Police in Brazil.
European Union has insisted Brazilian representatives attend an emergency meeting to explain themselves regarding a scandal involving rotten meat and the country’s two largest exporters, JBS and BRF. Brazil has already announced that the 22 plants (out of over 4.000) allegedly involved in the scam have been closed.