JBS Scraps Reorganization After Brazil Veto; Shares Slump
October 27, 2016 | 1 min to read
JBS SA has scrapped a plan to move some operations outside Brazil after a government agency vetoed the move, sending shares of the world's biggest beef exporter tumbling and dealing a heavy blow to the company's wish to become a global food processing powerhouse.
In a Wednesday securities filing, São Paulo-based JBS said BNDES Participações SA, the investment arm of Brazil's state development bank BNDES , opposed the plan, which included separating the company's global operations and moving them to Ireland.
Under terms of the plan, which were first reported by Reuters on May 11, the JBS Foods International unit was to be listed in New York. Investors saw the transaction as the best way for JBS to become the first Brazilian multinational with a clear division of local and global assets.
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