Risk factor: corruption
‘It was the rule of the game. […] Corruption was on the upper floor, with the authorities.’ 52 Joesley Batista
‘Strong political connections and financing from stateowned banks facilitated the growth of JBS and other group companies. The family and its companies are now implicated in politically-linked corruption investigations.’ 53 is still Slaughtering the Amazon
Debtwire, October 2016
While JBS was founded by José Batista Sobrinho, most of the company’s expansion has come under the leadership of his three sons: José Batista Júnior (known as Júnior Friboi), Wesley and Joesley.54 The Batista family also owns a significant share of JBS, via holding company J&F Investimentos. According to the 2017 US Securities and Exchange Commission filing, ‘J&F is owned, indirectly through several Brazilian holding companies, by the Batista Family’ including JBS founder José Batista Sobrinho and five of his children.55 As of 25 June 2020, the Batista family’s investment arm held a 40.03% stake in JBS,56 with an additional 2.3% stake held by JBS itself and classified as ‘treasury’.57 The Brazilian government’s BNDES bank is the second-largest shareholder of JBS, with a 21.32% stake.58 Foreign investors – including international banks, investor funds and sovereign wealth funds – appear to hold at least 16% of the group, according to Bloomberg.59 According to Debtwire, the Batista family’s political links and relationships with government and the state, and particularly its ties with state-owned banks, have been key to
How
its growth. BNDES provided financing to JBS
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for its landmark acquisitions, including Pilgrim’s
