Chinese parent of U.S. pork giant seeks public listing after acquiring company in 2013
- Chinese parent of Smithfield Foods plans to take the pork giant public in the US and Mexico on NYSE or Nasdaq
- Smithfield, the largest U.S. pork producer, was acquired by WH Group in a $4.7 billion deal in 2013
- The company went public in Hong Kong in 2014 after raising more than $2.3 billion
- Smithfield’s return to US markets comes amidst heightened tensions between the U.S. and China
- Pork processors are looking to improve profits after a challenging 2023 due to oversupply and flat demand
- Lower grain costs for livestock feed expected to boost meat companies’ bottom lines
The Chinese parent of Smithfield Foods, WH Group, plans to take the world’s largest pork-producing company by sales public in the US and Mexico on either the New York Stock Exchange or Nasdaq. The move comes after the company went public in Hong Kong in 2014 following a $4.7 billion acquisition in 2013. Smithfield, which employs nearly 40,000 people, faces criticism over its ownership amid tensions between the US and China. Despite challenges such as oversupply and flat demand, lower grain costs are expected to boost meat companies’ bottom lines.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Smithfield Foods being the largest U.S. pork producer and its parent company WH Group’s plans to take it public in the U.S. or Mexico. It also discusses the company’s financial performance and industry context. However, there is a minor detail about StubHub’s IPO delay that might be tangential to the main topic.
Noise Level: 4
Noise Justification: The article provides some relevant information about Smithfield Foods’ plans to go public in the U.S. and Mexico on either NYSE or Nasdaq, but it also includes some irrelevant details such as the mention of StubHub’s IPO delay and JBS’s plans to list its shares in the U.S. Additionally, there is a brief mention of tensions between the U.S. and China regarding Smithfield’s ownership, which could be explored further for a more in-depth analysis.
Public Companies: WH Group (288), Tyson Foods (null), JBS (null)
Private Companies: Smithfield Foods
Key People: Shane Smith (American chief executive of Smithfield)
Financial Relevance: Yes
Financial Markets Impacted: The announcement of Smithfield Foods’s parent company, WH Group, planning to take the pork giant public in the U.S. and Mexico on either the New York Stock Exchange or Nasdaq could impact financial markets as it requires approvals from Hong Kong’s stock exchange and the U.S. Securities and Exchange Commission. Additionally, Smithfield’s return to the public markets comes during a choppy IPO market.
Financial Rating Justification: The article discusses the financial decision of WH Group taking Smithfield Foods public in the U.S. and Mexico, which could impact stock exchanges and the overall financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article. The information provided discusses Smithfield Foods’ parent company, WH Group, planning to take the pork giant public in the U.S., but it does not involve any major disaster or crisis.
www.wsj.com 
