LatinNews Daily Report - 09 May 2012

Brazil | Meirelles to steer Delta takeover. Brazil's J&F Holding, the controlling shareholder of the leading global meat packer JBS, is expected to announce today its takeover of the troubled construction firm Delta Construção, which is at the centre of a major corruption scandal (centred on an illegal gaming mafia). Delta Construção, headquartered in Rio de Janeiro, has 100% of its works contracts with the public sector and has received an estimated US$1.57bn in government concessions since 2007, including key infrastructure projects for the 2014 World Cup and the 2016 Olympics. The federal government-allied state governor of Rio, Sérgio Cabral, is coming under intense pressure over his links to the former president of Delta, Fernando Cavendish, who recently stepped down over the scandal. The former head of the central bank, Henrique Meirelles (2002-2010), currently the chairman of J&F's board, is expected to take over the financial administration of Delta. Wesley Batista, the CEO of JBS, controls J&F Holding, through which the Batista family also controls several other companies including Banco Original, Eldorado Celulose e Papel, Flora Produtos de Higiene e Limpeza and Vigor (a dairy company). Brazil’s national development bank (Bndes) also has a 30% stake in J&F Holding.

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