Amidst the scandal, JBS escalate plans to invest in the United States

Involved with several corruption scandals, JBS is looking to the United States. According to a reportage on the financial publication Valor Economico, their expansion to the USA is actually the reason that led their main executives to decide to go for a plea bargain. Brazilian outlets and internationals alike featured several corruption scandals related to the giant meat processing company, originally from Brazil, in the last few days. A tape showing Brazil’s president, Michel Temer, authorising bribes from their executives to an ex-congressman leader (Eduardo Cunha) has been the main story covered.

Currently, around 70% of JBS’s operation is already outside Brazil and they have 56 factories in the USA. A couple of days after the tape was revealed on the press, JBS’s CEO Wesley Batista travelled to New York, where he has been so far, generating rumours that he was fleeing from a possible  prosecution in his home country.  But that also may hint their plan to expand JBS outside Brazil.

The article also mentioned that JBS tried to move its headquarter to Ireland last year. But it was barred by Brazilian laws which considered the act as a denationalization of the company.

However, on the short term, JBS will struggle in the US. The American Rose Law Firm is preparing a class action for all JBS’s share holders who made a lost due to Batista’s revelation in order to grant his plea bargain. JBS is already in touch with the American Department of Justice in order to reach a deal. The company’s future is still uncertain but it may be able to fix its image.

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