JBS SA: Plant closures unrelated to Batista legal issues
Oct. 19, 2017
by Erica Shaffer
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The company shuttered seven processing plants in Brazil over a tax dispute.
SÃO PAULO, Brazil – A tax dispute between JBS SA and the local government in the state of Mato Grasso do Sul in Brazil prompted the meatpacker to shutter seven processing plants in the region.
The court froze $230 million in assets belonging to JBS SA and its holding company, J&F Investimentos. The company said in a statement: “Given recent legal actions taken against the company in the state of Mato Grosso do Sul, Brazil, JBS has suspended beef operations in that state. Until matters are resolved, a suspension of operations is the most prudent course of action to protect the interest of shareholders and suppliers. No other JBS operations are impacted.”
The company said the tax dispute and plant closures are “completely unrelated to any individuals.”
Brothers Wesley and Joesley Batista were arrested and jailed pending trial on charges of insider trading and manipulation of the stock market. The Batista family controls more than 40 percent of JBS SA.