JBS: The Brazilian Meat Giant’s Quiet NYSE Debut and its Controversial Past
JBS: The Brazilian Meat Giant’s Quiet NYSE Debut and its Controversial Past
Hey friend, did you hear about JBS? The world’s largest meat company, based in Brazil, just quietly listed on the New York Stock Exchange (NYSE). No big fanfare, no ringing of the bell – just a simple direct listing. Pretty unusual for a company of this size, right?
JBS is HUGE. We’re talking nearly $80 billion in annual sales, a massive global operation processing everything from beef to salmon, and employing around 280,000 people. Over half their sales come from North America, where they’re the biggest beef processor, second-largest pork supplier, and majority owner of Pilgrim’s Pride (the second-largest chicken company).
But here’s the thing: JBS has a bit of a checkered past. Two members of the founding Batista family served jail time due to a major corruption scandal in Brazil involving bribery and securing cheap government loans. This involved paying around $150 million in bribes to Brazilian politicians! Environmental groups also accuse them of contributing to deforestation in the Amazon, a claim JBS denies.
This history is why their NYSE listing wasn’t exactly welcomed with open arms. Some of the biggest US banks, like Morgan Stanley and JPMorgan Chase, refuse to work with them due to compliance concerns. Even some US senators and shareholder advisory firms voiced opposition, citing the corruption risks and potential for increased monopoly power.
Despite the controversy, JBS’s leadership argues the NYSE listing will improve corporate governance, reduce their cost of capital, and give them access to a wider pool of investors. They reported a nearly $2 billion profit in 2024, exceeding analyst expectations, which might be convincing some investors to overlook the baggage.
The opening share price was $13.65, and interestingly, the stock closed slightly higher on its first day, even as major US indexes fell. So, the market seems relatively unfazed for now. Whether this remains the case, only time will tell. It’ll be interesting to see how JBS’s performance on the NYSE reflects investor sentiment towards their past controversies and future prospects.
It’s a fascinating case study – a massive, profitable company with a complex history navigating the complexities of the global financial market. Let me know what you think!
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