Members of the European Parliament (MEPs) have written to U.S. Securities and Exchange Commission Chairman Gary Gensler, urging him to reject JBS’s application for an Initial Public Offering (IPO) on the New York Stock Exchange.
A cross-party group of four MEPs, representing multiple countries and committees, signed the letter.
In 2023, the Brazil-based JBS proposed a dual listing, in which the company would trade its shares on the São Paulo Stock Exchange (B3) and the New York Stock Exchange (NYSE). Under the proposal, Level II Brazilian depository receipts will be traded on B3, backed by Class A shares listed on the NYSE. Minority shareholders may cancel BDRs at any time to directly hold Class A shares.
In their letter, the MEPs said there is an “urgent need for regulatory scrutiny” because of the “potential human and environmental impact of JBS’s IPO.” They went on to criticize the company for alleged unethical business practices and poor environmental stewardship.
“It is imperative to recognize that the consequences of allowing this IPO extend far beyond Wall Street and also have a significant impact on member states within the European Union,” they wrote.
“Given these grave concerns, we call on the SEC to reject JBS’s application for listing on the NYSE. Allowing JBS to proceed with its IPO would send a dangerous signal that environmental degradation and corporate malfeasance are tolerated in the financial markets. It is incumbent upon regulators to protect the public interest.
The MEPs to sign the letter are Miriam Lexmann, Committee on International Trade; Pina Picierno, Committee on Petitions; Engin Eroglu, Committee on Economic and Monetary Affairs; and Christine Singer, Committee on Agriculture and Rural Development. Lexmann is from Slovakia, Picierno is from Italy, and Eroglu and Singer are both from Germany.
JBS is the world’s largest poultry producer and a major producer of pork and beef. In addition to having operations in Brazil, the company has a strong presence in North America, Europe, Australia and New Zealand.
Other opposition
The MEPs are not the only ones to express opposition to a JBS listing on the NYSE.
Following JBS’ application for a NYSE IPO, an advocacy group called Ban the Batistas formed, which says it formed to fight “to protect American farmers, ranchers, consumers and investors” from the risks related to a potential U.S. listing of JBS.
Numerous members of the United States Congress have also expressed concerns about the IPO, including: Sens. Cory Booker, D-New Jersey; Ron Wyden, D-Oregon; John Barrasso, R-Wyoming; Richard Blumenthal, D-Connecticut; Sherrod Brown, D-Ohio; John Fetterman, D-Pennsylvania; Josh Hawley, R-Missouri; Robert Menendez, D-New Jersey; Chris Murphy, D-Connecticut; Marco Rubio, R-Florida; Bernie Sanders, I-Vermont; Jon Tester, D-Montana; Chris Van Hollen, D-Maryland; Elizabeth Warren, D-Massachusetts; Peter Welch, D-Vermont and Harriet Hageman, R-Wyoming.
Environmental groups Mighty Earth and Rainforest Action Network (RAN) have also expressed opposition to the potential IPO.
