fbpx

JBS and Pilgrim’s Pride executives face US trial over Moy Park deal

A JUDGE in the US state of Delaware has ruled that executives of Brazilian agri-giant JBS and its subsidiary Pilgrim’s Pride will face trial over the acquisition of Moy Park in 2017.

Minority shareholders in Pilgrim’s Pride have sued the company’s controlling stockholder, JBS SA, and five individuals on the board of Pilgrim’s Pride.

The shareholders are challenging the $1.3bn transaction in which Pilgrim’s Pride bought Moy Park, which was also a JBS subsidiaries.

They allege that JBS needed to raise cash quickly because of a fine levied on the company by the Brazilian government.

And as JBS ultimately owned both parties, the shareholders are seeking to determine if the transaction was entirely fair.

A date for the trial has not yet been set.