Brazilian government comes to the rescue of giant meat corporation JBS SA

Thursday, August 25th 2011 - 00:00 UTC

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Brazilian meat giant JBS S.A. has announced that BNDES (Brazilian Development Bank) converted a large amount of JBS debt into equity, boosting the bank’s shareholdings in the company to 30.4% from 17% previously. Read full article

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GeoffWard2
I thought the US operation was a separate company. Its chicken/beef losses should be 'Limited' - that's why it is a separate company.

So why the BNDES intervention to prop-up the Brasilian company?
It seems to me like Government leaning on a Brasilian company to gain bigger share of equity, doing it when the company group is stretched to its limit, and doing it for 'political' rather than economic reasons.

Private enterprise - good for making profits;
private enterprise with government hand in the till - good for politicians' bank balances.

Just a thought.
Aug 25th, 2011 - 02:07 pm - Link - Report abuse 0
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