The much-anticipated dual listing of JBS SA, the world’s largest meat processing company, on both the Brazilian and New York stock exchanges has been postponed to later in 2024. This announcement comes as the latest setback for the São Paulo-headquartered giant, which has been planning to expand its financial base through the dual listing.
Corporate Expansion and History
JBS SA, originally founded in 1953 in Anápolis, Goiás, has grown significantly over the decades to become the leading force in the global meat and poultry industry. The acquisition of JBS USA in 2007, following the purchase of Swift & Co’s assets, marked a significant expansion into the North American market. Since then, the company has continued to grow through strategic acquisitions, including those of Smithfield Foods’ beef operations and a majority stake in Pilgrim’s Pride poultry.
Delay in Plans
This delay represents the second postponement in JBS SA’s efforts to achieve dual listing status on the New York Stock Exchange (NYSE) and the São Paulo-based Brazil Stock Market (BOVESPA). The decision aims to allow American depository receipt holders more time to vote on the dual listing transaction.
Environmental and Regulatory Challenges
JBS’s plans have not only faced logistical hurdles but also opposition from environmental groups such as Oxfam, Greenpeace, and the Rainforest Action Network. These organizations have raised concerns over non-financial issues, leading to increased scrutiny from elected officials and potentially influencing the company’s dealings with the U.S. Securities and Exchange Commission.
Strategic Acquisitions and Market Dominance
JBS’s aggressive expansion strategy, including its 2007 acquisition of Swift & Company and subsequent purchases, has cemented its position as a global leader in the meat processing industry. The company’s move to access U.S. equity markets has been closely watched, highlighting its significant impact on the global food supply chain and market dynamics.
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