Members of the United States Senate are warning U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler to consider the risk JBS (JBS) poses to the integrity of U.S. capital markets and the legal rights of U.S. investors as they consider the company’s proposal to list on the New York Stock Exchange (NYSE).
Presently, JBS, a Brazil-based company, had been traded on the São Paulo Stock Exchange (B3), but in 2023, it proposed a dual listing on the BE and NYSE. Outside of South America, JBS has operations in the U.S., Canada, Mexico, United Kingdom, France, Netherlands, Australia and New Zealand.
A group of U.S. Senators on January 11 wrote a letter to Gensler, pointing out numerous allegations of unethical practices and behaviors of JBS and its leaders.
“As the U.S. Securities and Exchange Commission (SEC) considers this proposal, we urge the SEC to protect the integrity of U.S. capital markets and the legal rights of U.S. investors by exposing the risks that JBS poses to potential shareholders, including its track record of corruption, human rights abuses, monopolization of the meatpacking market, as well as environmental risks,” wrote the senators. “Consistent with the SEC’s powers and responsibilities, should JBS fail to cure any such disclosure deficiencies, we would ask that the SEC decline to declare the company’s registration effective.”
The letter signed by U.S. Sens. Cory Booker, D-New Jersey; Ron Wyden, D-Oregon; John Barrasso, R-Wyoming; Richard Blumenthal, D-Connecticut; Sherrod Brown, D-Ohio; John Fetterman, D-Pennsylvania; Josh Hawley, R-Missouri; Robert Menendez, D-New Jersey; Chris Murphy, D-Connecticut; Marco Rubio, R-Florida; Bernie Sanders, I-Vermont; Jon Tester, D-Montana; Chris Van Hollen, D-Maryland; Elizabeth Warren, D-Massachusetts; and Peter Welch, D-Vermont.
JBS is the world’s largest poultry producer. Its Brazilian poultry operations are part of the Seara business. JBS is also the majority shareholder for Pilgrim’s Pride, the second-largest poultry producer in the United States, which also has operations in Mexico and in Europe.
Pilgrim’s Pride is publicly traded in the United States on the NASDAQ exchange under the PPC ticker.
JBS also operates a U.S. subsidiary, JBS USA, which primarily operates in the beef and pork industries.
