JBS struggles as shareholders oppose New York Stock Exchange listing

In Brazil, the meat giant JBS is attempting to secure approval for a dual listing of its shares on the New York Stock Exchange (NYSE). The U.S. Securities and Exchange Commission recently granted this request, positioning the company to potentially attract new investors and enhance visibility in global markets. However, as of May 23, 2025, an internal shareholder vote indicates that 52% of minority shareholders are against the plan. This dissent stems largely from concerns surrounding the company's leadership and its past controversies, particularly involving the Batista brothers, JBS's controlling family, who have faced legal issues including bribery charges. A recent report from Glass Lewis, an advisory firm, emphasized skepticism around the Batistas' return to the JBS board and the potential implications for corporate governance. Critics argue that the dual share class structure would concentrate voting power among existing controlling shareholders, further marginalizing minority investors. These concerns have drawn scrutiny from U.S. lawmakers, including Senator Elizabeth Warren, who has raised alarms about the ethical implications of JBS’s ownership and its link to influential political donations, particularly from Pilgrim’s Pride, a subsidiary of JBS, to former President Trump's inaugural committee. The political dynamics complicate the shareholder vote, as numerous senators have expressed apprehension about JBS's corporate practices and the implications for U.S. investors. Warren's recent communications with JBS have highlighted the potential risks associated with the company’s governance, its history of corruption, and its implications for the broader meat industry’s competitive landscape. The outcome of JBS’s shareholder vote will be pivotal not just for the company's future but also for investor confidence in corporate governance practices among firms with contentious histories. Should the proposal fail, it may set a precedent for increased scrutiny on other global multinationals seeking to enter U.S. markets amid rising concern about the ethical implications of such listings.