Chinese-owned pork producer Smithfield prepares for US listing -WSJ (updated)

WH

19/10/2023 05:02

(Adds details from WSJ report in paragraph 2, background in
paragraphs 4-6)
       Oct 18 (Reuters) - Smithfield Foods' Chinese owner WH
Group  0288.HK  is working with banks to take the U.S.-based
pork producer public again in the United States, the Wall Street
Journal reported on Wednesday, citing people familiar with the
matter.
    Smithfield could list its shares as early as next year, the
WSJ reported, adding the deliberations are ongoing and the
timing could change.
    Smithfield and WH Group did not immediately respond to a
Reuters request for comment.
    WH Group bought Smithfield in 2013 in a $4.7-billion deal
aimed at tapping the massive supplies of U.S. meat for export to
China.
    Virginia-based Smithfield is set to permanently close 35 hog
farm sites in Missouri and lay off 92 employees in October,
according to a Missouri Worker Adjustment and Retraining
Notification Act (WARN) notice in August.
    The U.S. meat industry has struggled with declining profits
and reduced demand from consumers squeezed by inflation and
higher interest rates. Amid spiraling feed and labor costs, meat
companies have struggled to predict demand for their products.

 (Reporting by Rishabh Jaiswal in Bengaluru; Editing by Savio
D'Souza)
 ((rishabh.jaiswal@thomsonreuters.com;))