🇧🇷🤑🤝🪖 — Businessman and lobbyist Joesley Batista, controller of J&F Investimentos, has decided to invest in a new line of business: the defense industry. He signed a contract to participate in the financing of Avibras, the largest company in the sector in Brazil.

🤡 The agreement is led by Fundo Brasil Crédito, which raised R$300 million from private investors, and has the endorsement and full support of President Luiz Inácio Lula da Silva (PT), totaling ten indirect forms of support from the president to the businessman since 2023.

➡️ In addition to being the company’s main creditor, currently under judicial recovery since 2022, the fund was the author of the alternative restructuring plan, already approved by the courts and creditors. Joesley Batista, the Fundo Brasil Crédito, and Avibras declined to comment.

💥 The holding company J&F Investimentos, owned by the family of Joesley Batista and Wesley Batista, is currently present in six major sectors of the economy: animal protein, through JBS; pulp and paper (Eldorado Brasil Celulose); energy (Âmbar Energia), nuclear; hygiene, cleaning, and cosmetics (Flora, which owns brands such as Minuano, Francis, and Albany); and financial services, with PicPay. With Avibras, the defense sector becomes a new area of activity.

🇧🇷 The investment by Joesley and other investors would address one of the main challenges faced by the Ministry of Defense under Lula’s administration: the lack of funding to invest in a strategic sector. Among the world’s major economies, Brazil is among the countries that invest the least in the development and production of military defense items.

❗️ Behind the scenes, it is said that the Lula administration has already instructed the Brazilian Army to support Avibras through new contracts for the purchase of missiles. One of the arguments would be the outdated equipment of the Armed Forces, as well as the need to strengthen Avibras and prevent interest from international companies. In the last two years, Chinese, Australian, and Saudi groups have explored acquiring the company.

Source 🖇