Will UK block JBS US Financial Listing?
UK Lawmakers Urge SEC to Block JBS SA’s Entry into US Financial Markets
JBS SA, the colossal Brazil-based meat company, is facing a significant hurdle in its plans for a dual stock listing. A group of UK Members of Parliament, self-styled as “Ban the Batistas” – a nod to the controlling family of JBS SA – are taking a stand against the company’s financial maneuvers in the United States.
Controversial History Haunts JBS as MPs Intervene
Pressures Mount Over Alleged Malpractices
The meat giant, known for its global dominance, has been embroiled in controversies, including bribery allegations involving food safety inspectors. This troubled history is now catching up as it plans to expand its financial footprint.
JBS’s Ambitious Dual Listing Plans Under Scrutiny
Expansion Efforts Meet Political Roadblock
JBS’s announcement last summer about listing on both the Sao Paulo and New York Stock Exchanges, through Brazilian Depository Receipts (BDRs) and direct listing, respectively, was a strategic move to amplify its global presence and shareholder value. The company aimed to diversify into more branded and value-added food products, reducing capital costs and boosting shareholder returns. However, the required SEC approval for the New York listing is now under threat.
More JBS News: JBS’s New R$570m Feed Facilities
Related: How Did JBS Become The World’s Largest Meat Producer?
British Politicians Lobby Against JBS’s IPO in the US
Letter to SEC Chair Highlights Environmental and Ethical Concerns
UK parliamentarians have expressed their opposition to JBS’s Initial Public Offering (IPO) in a letter to SEC Chair Gary Gensler. They cite JBS’s involvement in deforestation, human rights violations, and land seizures from Indigenous communities. The letter, underscoring the company’s adverse impact on global climate and biodiversity, urges the SEC to deny the IPO.
MPs Representing Global Environmental Concerns
A Call to Uphold Climate Commitments
The letter, signed by a group of about thirteen MPs from the 650-member UK House of Commons, argues that allowing JBS’s US market entry would contradict global climate change mitigation efforts. It emphasizes the importance of the US standing firm in its climate commitments and influencing global public policy on meat consumption.
Ban the Batistas: A Movement Monitoring US Climate Leadership
Group Highlights Risks to American Stakeholders from JBS Listing
Ban the Batistas, an alliance of organizations, is advocating to protect American farmers, ranchers, consumers, and investors from the risks posed by JBS’s potential US listing. They highlight the considerable influence of the Batista brothers, Joesley and Wesley, through their financial vehicle, J&F Investments, in controlling JBS SA, which employs over 250,000 people across 190 countries, including a significant workforce in North America through JBS USA.
