JBS to Begin Trading on NYSE Amid Controversy

JBS, one of the world's largest meat companies, is set to begin trading its shares on the New York Stock Exchange on Friday. The Brazilian meat giant, founded 72 years ago, has long aimed to list its shares in New York, where it generates half of its annual revenue and employs over 72,000 people. JBS is the top beef producer and the second-largest producer of poultry and pork in the United States.

Despite opposition from environmental groups, U.S. lawmakers, and other critics who point to JBS's history of corruption, monopolistic behavior, and environmental destruction, the company's minority shareholders approved a plan last month to list its shares on both the São Paulo and New York exchanges. JBS argues that a dual listing would provide broader access to investors and more competitive interest rates, aiding in its growth financing. The company also stated that a U.S. listing would subject it to greater regulatory oversight. The U.S. Securities and Exchange Commission approved JBS's planned listing last month.

However, the proposed listing has faced significant resistance. An environmental group sent a letter to the NYSE board urging it to decline the listing, asserting that JBS is illegally profiting from deforested land in Brazil. An influential independent investor advisory firm also recommended that JBS's shareholders reject the planned listing. The firm expressed concern over the recent return of brothers Joesley and Wesley Batista to the JBS board. The brothers, sons of JBS's founder, were briefly jailed in Brazil in 2017 on bribery and corruption charges. The firm also objected to the company's plan for dual share classes, which grant the Batistas and other controlling shareholders more voting power.

JBS maintained that the outcome of the shareholder vote demonstrated confidence in the benefits of a dual listing. The company's plans to list on the New York Stock Exchange remain under scrutiny as critics continue to voice their concerns over its environmental practices and corporate governance. The controversy surrounding JBS's listing highlights the growing scrutiny that companies face regarding their environmental and ethical practices, as well as the increasing pressure from investors and regulators for greater transparency and accountability.