a multinational of Indonesian origin, opened a new arbitration at the International Chamber of Commerce (CCI), in Paris, against the holding company in the dispute over control of the Brazilian company . According to a note sent by Paper, the company seeks compensation of US$3 billion for the “unfair and abusive acts carried out by the two Brazilian companies to prevent the transfer of control of Eldorado from taking place”.
In the note, Paper stated that the choice of Paris as the venue for the new arbitration is an attempt to “reduce the space for delaying maneuvers” by the brothers Joesley and Wesley Batista, owners of J&F.
According to the Asian company, the two “have been taking advantage of procedural loopholes in the legislation and abusing the Brazilian judicial system by creating a hostile scenario with several factoids and parallel actions to not hand over the company they sold for R$15 billion”.
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The fight has lasted more than six years and involves around R$15 billion. In 2017, Paper purchased 49.41% of Eldorado.
The contract provided for the transfer of 100% of the company controlled by J&F to the Indonesian company. The remaining 50.59% of the shares remain with the Batista holding after the agreement was judicialized on several fronts.
Paper accuses J&F of not complying with the purchase and sale contract. J&F argues that the Asian multinational did not release the guarantees provided for in the agreement. Now, one of the main arguments of the Batista brothers’ holding company against the sale is a law that restricts the purchase of Brazilian land by foreigners. According to J&F, the total areas under Eldorado’s control is around 450 thousand hectares.
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In 2021, Paper won a victory in the ICC Brasil arbitration court, which ruled 3-0 that J&F complied with the terms of the negotiation made in 2017 and sold 100% of Eldorado to the Asian group. The court is made up of four arbitrators, two appointed by each side.
The arbitration decision was questioned by J&F in the São Paulo Court and the trial was suspended by decision of Minister Mauro Campbell, of the Superior Court of Justice (STJ), who responded to J&F’s request.
