Meat & Livestock News

Smithfield Foods Contemplates U.S. Stock Market Re-entry Amid Sectoral Challenges

The concept of the growth of the American stock market, inflation, Fed rates, unemployment

WH Group’s 2013 acquisition of Smithfield Foods for $4.7 billion marked one of the most significant U.S. business buyouts by a Chinese entity at the time. This led to Smithfield’s delisting from the New York Stock Exchange. Subsequently, WH Group went public in Hong Kong in 2014, amassing more than $2.3 billion.

The potential re-entry of Smithfield into the U.S. stock market comes at a turbulent period for the American meat industry, characterised by issues such as oversupply and variable consumer demand.

WH Group’s strategic objective for Smithfield is to bolster the company’s market valuation. However, the Chinese ownership of Smithfield has ignited concerns in the U.S., particularly regarding the security of the national food supply chain.

Notably, Smithfield is not alone in considering a U.S. stock market return. Other key industry players, including Brazil’s JBS, are also weighing similar options.