Senators Ask for CFIUS Review of Brazilian Meatpacking Conglomerate
The Committee on Foreign Investment in the U.S. should review all U.S. investment transactions by Brazilian meatpacking conglomerate JBS S.A., its holding company J&F Investimentos and any entity owned by the company’s owners Wesley and Joesley Batista, two senators said. The companies use “criminal practices to obtain the funds to acquire U.S. companies,” which may jeopardize U.S. economic security and undermine U.S. efforts to combat corruption, Sens. Bob Menendez, D-N.J., and Marco Rubio, R-Fla., said in an Aug. 13 letter to Treasury Secretary Janet Yellen. “With JBS S.A. planning further U.S. acquisitions in the near future,” the senators said, “the need for a thorough investigation is urgent.”
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
Menendez, who chairs the Senate Foreign Relations Committee, and Rubio, a member, said JBS S.A. has “significantly expanded their share of the U.S. meatpacking industry” over the past 14 years through bribery. They said the company has bribed Brazilian officials to acquire state financing and has violated the U.S. Foreign Corrupt Practices Act. They also said the company last month acquired Vivera Topholding BV, the third-largest plant-based food product manufacturer in Europe, and plans to expand into the U.S. financial technology sector through Banco Original, a subsidiary.
“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,” the senators said. “We therefore ask that CFIUS review the national security implications of all JBS S.A.’s acquisitions in the U.S.” Treasury didn’t comment.