U.S. Sens. Marco Rubio and Bob Menendez have requested that the Committee on Foreign Investment in the United States (CFIUS) conduct a formal review of the transactions involving U.S. companies that were made over the past 12 years by Brazilian meat and poultry company JBS.
Rubio, R-Florida, and Menendez, D-New Jersey, made the request in a formal letter written to U.S. Treasury Secretary Steven Mnuchin.
Among the JBS transactions involving U.S. companies mentioned by the senators include the acquisition of the majority stake in Pilgrim’s Pride, the acquisition of Cargill’s U.S. pork processing operations, the purchase of Swift Foods and the acquisition of Smithfield Foods’ beef processing operations.
Key to the senators’ concerns, according to the letter, are the admission by former JBS executives Wesley Batista and Joesley Batista that they bribed Brazilian politicians “in order to ilicitly acquire loans and financing from the Brazilian Development Bank (BNDES) and several Brazilian pension funds.”
“We are troubled that JBS S.A. used the ill-gotten financing that it received from BNDES, which totaled more than $1.3 billion, to acquire American companies,” Rubio and Menendez wrote.
“Given its admitted criminal conduct to secure loans that were used for investment in the United States and the group’s business relationships with Venezuela’s Maduro regime, as well as its growing reliance on financing from entities aligned with the Chinese government, we ask that CFIUS conduct a review of JBS S.A.’s acquisition of U.S. companies to assess the implications for security and safety of America’s food supply and, in turn, our national security. The growing trend of foreign investment in our food system demands increased attention and scrutiny in order to safeguard our nation’s food supply.”
The senators also expressed concerns about business JBS allegedly conducted with the Venezuelan Corporation of Foreign Trade (CORPOVEX), which they stated in their letter had been identified by the Financial Crimes Enforcement Network in September 2017 for involvement in public corruption.
JBS issues statement
JBS, in response to the senators' request, issued the following statement: "JBS S.A. is aware of the letter sent to Secretary Mnuchin. The company has fully cooperated with all relevant authorities in a transparent manner regarding past events in Brazil. The company will continue to cooperate and respond to any subsequent inquiries.
"JBS USA is an important American employer, providing more than 60,000 jobs and partnering with more than 11,000 U.S. farmers, ranchers and poultry producers. The company plays a critical role in U.S. agricultural communities, creating opportunities for rural family farmers and ranchers who depend on our business to transform their livestock and poultry into products that consumers trust and enjoy."
JBS, according to the WATTAgNet Top Poultry Companies Database, is the world’s largest poultry company, slaughtering 3.5 billion birds annually.
