Brasilia:​ J&F Investimentos, controlling shareholder of the world's and Australia's largest meat processing company JBS, agreed to pay a record-setting 10.3 billion reais ($5.4 billion) fine for its role in corruption scandals that threaten to topple Brazilian President Michel Temer.

The settlement meant Brazil's sweeping graft investigations have now led to the world's two biggest fines levied under leniency deals, Brazilian prosecutors said.

One of JBS Australia's beef processing plants in Riverview, Queensland. Credit:Alex Ellinghausen

J&F's penalty surpassed the 8.5 billion reais Brazilian construction firm Odebrecht agreed to pay for its role in the political graft scandal convulsing Latin America's biggest economy.

"The payments will be made exclusively by the holding company and should start in December 2017," prosecutors said in a statement , adding that J&F would have 25 years to make the payments. The instalments will be adjusted based on the benchmark IPCA consumer price index.