October 25, 2023

WH Group eyes Smithfield Foods' United States public listing

The Chinese owner of Smithfield Foods, WH Group, is collaborating with banks to reintroduce the US-based pork producer to the American public market, according to individuals familiar with the matter, Reuters reported.

Smithfield is considering the listing of its shares in the United States, with a potential timeline as early as next year. It is important to note that these discussions are ongoing, and the timing of the public offering could be subject to change.

WH Group acquired Smithfield in 2013 through a US$4.7-billion deal, primarily aimed at leveraging the vast supplies of US meat for export to China.

Based in Virginia, Smithfield recently disclosed plans to permanently shutter 35 swine farm sites located in Missouri and to lay off 92 employees in October. This was conveyed through a notification under the Missouri Worker Adjustment and Retraining Notification Act (WARN) in August.

The US meat industry has been grappling with reduced profits and a decline in demand from consumers affected by inflation and higher interest rates. The industry has been challenged by escalating feed and labour costs. Meat companies have struggled to predict demand for their products.

-      Reuters