U.S. Sens. Marco Rubio, R-Florida, and Bob Menendez, D-New Jersey, sent a letter to Secretary of Treasury Janet Yellen to renew their request that the Committee on Foreign Investment in the United States (CFIUS) conduct a formal review of the transactions of JBS and any entity owned or controlled by brothers Wesley and Joesley Batista.
The two senators raised the same concern with then-Secretary of the Treasury Steven Mnuchin in 2019. However, the two senators decided to renew their push for a review after the Brazil-based JBS, already the majority stakeholder in Pilgrim’s Pride, proposed to buy all of the remaining shares of Pilgrim’s and delist it in the United States.
In 2019, Rubio and Mendez mentioned concerns over the Batista brothers’ admission bribing Brazilian politicians “in order to ilicitly acquire loans and financing from the Brazilian Development Bank (BNDES) and several Brazilian pension funds.”
Concerns of corruption are central to the most recent request for a review, as well.
“When foreign companies benefit from corrupt practices and spread them to U.S. markets, they jeopardize our economic security, present direct risks to our businesses, and undermine our efforts to fight corruption abroad. With JBS S.A. planning further U.S. acquisitions in the near future, the need for a thorough investigation is urgent,” the senators wrote. “Only once we know the full extent and details of JBS S.A.’s acquisitions, after a thorough CFIUS review, will American businesses and consumers be safe.”
Pilgrim’s and JBS have yet to respond to a request for comments regarding the situation.
JBS has been active in the merger and acquisitions front during the past year, while most of that activity has been in other countries. JBS has acquired Vivera, a Netherlands-based plant-based protein company, as well as Bunge’s margarine and mayonnaise business assets in Brazil. The company has also announced its intent to acquire Australian businesses Rivalea Holdings, and Oxdale Dairy Enterprise, both located in Australia.
Meanwhile, Pilgrim’s Pride’s proposal to acquire Kerry Group’s Consumer Foods’ Meats and Meals business is pending.