SUBSCRIBE

Breaking News on Global Meat Trading and Processing

Headlines > Industry & Markets

Read more breaking news

 

 

Court lifts JBS asset freeze

Post a comment
Oscar Rousseau

By Oscar Rousseau+

14-Jul-2017

JBS will now proceed with its $300 asset sale to Brazilian rival Minerva
JBS will now proceed with its $300 asset sale to Brazilian rival Minerva

JBS has had its ban on the sale of assets to rival Minerva lifted by a Brazilian court, as the world’s largest meatpacker copes with the fallout from a corruption scandal. 

JBS was told by a Brazilian federal appeals court that a ban on the sale of its assets in Argentina, Paraguay and Uruguay to Minerva had been overruled. It clears the way for a $300m deal that had looked in jeopardy and will mark the meat giant’s exit from the three South American countries.

Not only did the overruling clear the way for the Minerva deal, it also authorised JBS to buy and sell any other assets too.

Meanwhile, JBS was told by antitrust authorities on 6 July that the $300m sale to Minerva would be able to go through, subject to court approval, without any restrictions.

JBS appeal

A deadline for JBS rival Minerva to take over the assets in Argentina, Paraguay and Uruguay has not been set. Approval from competition watchdogs, coupled with the lifting of the asset freeze, marks a swift turnaround for JBS as it tried to sell its assets.

Less than a month ago, on 19 June, a federal judge blocked JBS’ attempt to offload some of its South American assets , fearing the sale could interfere with an investigation into corruption allegations.

In response to the asset freeze, JBS announced plans to appeal the decision and said it would take “necessary legal measures” to overturn the ruling with the meatpacker determined to downsize its operations following a tumultuous 2017.

The challenging year started in March 2017 with the rotten meat scandal that implicated Brazil’s biggest meat processors, JBS and BRF, among others. But allegations of corruption and collusion in Brazil’s meat supply chain was just the start of a testing few months for the JBS hierarchy.

In May, seven senior JBS executives entered a plea bargain with the Federal Public Prosecutor’s Office to name the politicians that may have accepted bribes from the meatpacker. In return, the executives were fined R$225m ($70m) as part of a leniency deal.

In the same month, the holding company of JBS, J&F Investimentos, was fined R$10.3bn ($3.1bn), which will be paid over 25 years.

The business has hired a new chairman, Tarek Farahat , who has restructured the management team putting good governance practices at the heart of JBS.

Former chairman Joesley Batista has resigned.

Post a comment

Comment title *
Your comment *
Your name *
Your email *

We will not publish your email on the site

I agree to Terms and Conditions

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Related products

Related suppliers

Key Industry Events

 

Access all events listing

Our events, Shows & Conferences...

Live Supplier Webinars

Packaging for Export
William Reed Business Media
All supplier webinars