By Jamie Martin
WH Group, headquartered in China, is considering listing its subsidiary Smithfield Foods on a major US stock exchange. This move could potentially bring considerable capital to the pork producer amid market uncertainties.
Smithfield Foods, with operations in the US and Mexico, would be spun off in a New York Stock Exchange or Nasdaq listing, pending approvals from the Hong Kong stock exchange and US regulators.
This potential listing comes at a time when Smithfield's Chinese ownership has raised concerns in Congress, particularly among far-right members. These concerns are part of broader discussions about foreign influence in American agriculture, with legislative efforts focusing on limiting foreign ownership of US farmland.
In 2013, WH Group acquired Smithfield in a significant deal valued at $4.7 billion, aiming to cater to China's increasing pork demand.
Despite China remaining the world’s largest pork importer, its import needs have decreased due to an abundance of local pork supplies. This decline has prompted US and Brazilian suppliers to seek new markets in Asia, including Japan, South Korea, and the Philippines, intensifying global competition.
The consideration to list Smithfield Foods highlights the complex dynamics between international business interests and national agricultural policies, reflecting ongoing debates about globalization's impact on local industries.
Photo Credit: istock-apichsn
Categories: National