A court in Brazil has suspended JBS‘s plan to sell a clutch of assets in South America to meat processing rival Minerva.

According to Reuters, Federal Judge Ricardo Leite said the deal, announced earlier this month, could hinder a corruption investigation in which JBS’ controlling family are embroiled. Reuters reported Leite sits on the court that will review a leniency deal the Batista family reached with prosecutors.

In a statement issued in the wake of the ruling, JBS said: “In relation to today’s judicial ruling regarding the suspension of the sale of the company’s operations in Argentina, Paraguay and Uruguay to companies owned by Minerva, JBS will take the necessary legal measures in order to appeal the decision.”

Meanwhile, the office of Brazil’s attorney general urged state auditors to freeze assets of JBS and the Batista family, which owns 42% of the meat giant.

JBS’s deal with Minerva was for the sale of beef businesses in Argentina, Uruguay and Paraguay for US$300m.

Pul Argentina S.A. was to take on the Argentinian business, Frigomerc S.A. the operations in Uruguay and Pulsa S.A. the Paraguayan asset, JBS said. It described the companies as “entities controlled by Minerva S.A.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Earlier this week, JBS announced plans to offload more assets in a bid to beef up its finances.

The company, one of the world’s largest meat processors, revealed it plans to sell UK-based arm Moy Park, Five Rivers Cattle Feeding assets and farms in the US, plus its 19.2% stake in Brazil-based dairy group Vigor Alimentos.

JBS described the businesses on the block as “non-core and less strategic”. The company said its management expects the disposals to raise around BRL6bn.