Dive Brief:
- The China-based parent company of Smithfield Foods is weighing plans to list the pork company on the U.S. stock exchange, according to a securities filing issued over the weekend.
- WH Group would spinoff Smithfield's businesses in the U.S. and Mexico through a listing on the New York Stock Exchange or Nasdaq Stock Market, according to the filing.
- The plan was submitted to a Hong Kong stock exchange, and would need signoff from local regulators and the U.S. Securities and Exchange Commission. WH Group did not include timing information, noting details are still being finalized.
Dive Insight:
WH Group joins beef giant JBS in targeting U.S. stock exchanges to receive an influx of cash as meatpackers struggle with a volatile market. However, given Smithfield's ties to China, the listing could ignite intense scrutiny from Congress as lawmakers set their sights on targeting foreign influence on agriculture and other U.S. industries.
Smithfield's Chinese ownership has been a point of contention among some of the most far-right members of Congress. In March, a group of House Republicans asked agriculture committee leaders to drop a farm bill proposal undoing parts of California's animal housing requirements under Proposition 12 after Smithfield showcased support for the provision.
Lawmakers have looked to limit Chinese ownership of agricultural land, holding a high-profile hearing last year and pushing changes to how the Agriculture Department tracks foreign purchases. China controls a small fraction of U.S. farmland, with the majority owned by Smithfield.
WH Group acquired Smithfield in 2013 in a $4.7 billion deal to take advantage of China's growing demand for U.S. pork. Although China remains the top pork importer, the country's purchases have slowed considerably due to abundant local supplies.
China pork imports are expected to decline 21% over last year to 1.5 million tons, the lowest since 2019, according to the U.S. Department of Agriculture. Suppliers, including the U.S. and Brazil, are seeking alternative markets to China, leading to increased competition in countries such as Japan, South Korea and the Philippines.
