JBS SA, the world’s biggest beef producer, may turn its $7.1 billion Pilgrim’s Pride unit into the parent of U.S. operations in a so-called reverse merger after postponing an initial public offering of JBS USA, Chief Executive Officer Joesley Batista said.
“I would prefer to do the IPO of the U.S. unit, but a reverse merger of JBS USA and Pilgrim’s is possible,” Chief Executive Officer Joesley Batista told reporters in Sao Paulo today.
JBS is weighing the transaction to prevent Brazil from taking greater control of the company after the BNDES state development bank bought $2 billion of convertible bonds, a person familiar with the situation said in an interview last month. The bonds are convertible into JBS stock if the Sao Paulo-based company fails to hold an IPO of JBS USA by 2011.
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