Dive Brief:
- JBS has received approval from the U.S. Securities and Exchange Commission to list its shares on the New York Stock Exchange, despite objections from environmental and congressional lawmakers.
- The SEC granted the world’s largest meat company a declaration of effectiveness, allowing Brazil-based JBS to proceed with its proposal for a U.S. listing. Shareholders are set to vote on the proposal at a meeting on May 23.
- JBS CEO Gilberto Tomazoni believes that the listing will enhance market valuation and attract new investors, solidifying the company’s position as a global leader in the food industry.
Dive Insight:
Pressure was mounting on the SEC to deny JBS access to the U.S. market due to concerns over its environmental impact and links to deforestation. Environmental groups fear that a U.S. listing could further exacerbate JBS’s already significant carbon footprint.
Critics also highlight JBS’s history of misleading investors and consumers, particularly regarding climate issues and corporate governance. The company’s involvement in a corruption scandal in Brazil has further tarnished its reputation, leading to a lawsuit in the U.S. for allegedly deceptive climate claims.
International NGO Global Witness condemned the SEC’s approval of JBS’s listing, citing it as a failure of the U.S. financial regulatory system and a threat to society and the environment.
In addition to environmental concerns, U.S. lawmakers have raised anticompetitive worries about JBS’s proposed listing, warning of potential market consolidation and monopoly power.
Despite challenges and controversies, JBS is determined to move forward with its U.S. listing, aiming to unlock new capital and significantly increase its market valuation. The company’s long-awaited entry into the U.S. stock market could mark a turning point in its history, opening up new opportunities for growth.
With plans to list shares through a parent company in the Netherlands and on the São Paulo Stock Exchange in Brazil, JBS is poised to expand its investor base and enhance shareholder value in the coming months.