Plans by JBS, the world’s largest meat processor, to move its international headquarters to Ireland have been cancelled after the Brazilian Economic Development Bank (BNDES) vetoed the proposed move on Wednesday.

The BNDES controls about 24% of JBS, having invested close to $4bn in the company over the last decade, and has exercised its right to veto the proposed reorganisation of JBS.

Restructure

In May this year, JBS announced plans to restructure its business into two separate entities; JBS Brazil and JBS Foods International. Under the restructure, it was planned to float JBS Foods International on the New York Stock Exchange (NYSE) with the company’s headquarters located in Dublin.

The blocking of the proposed move by the BNDES will come as a blow to JBS. The company saw the move as a means to reduce its exposure to the struggling Brazilian economy and gain greater access to the international equity and debt capital markets. The move would also have enhanced JBS’s footprint in the European market, where it already owns Moy Park.

With an annual processing capacity of 26m head of cattle, 26m pigs and more than 5bn chickens, JBS is of a scale greater than anything seen in the European meat industry before.

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