USA – WH Group Ltd., the global pork industry leader and parent company of Smithfield Foods, has revealed plans to spin off Smithfield’s US and Mexico operations.
Following this spin-off, WH Group, referred to as the Remaining Company, will concentrate on its businesses in China and Europe.
These operations will include packaged meats, fresh meats, catering products, and condiments under prominent brands like Shuanghui, Krakus, Morliny, and Berlinki.
Meanwhile, Smithfield, the Spin-off Entity, will focus on its US and Mexico markets, continuing to produce its well-known premium-quality hams, smoked meats, bacon, and fresh pork.
On July 12, 2024, WH Group’s board of directors submitted a spin-off application to the Hong Kong Stock Exchange.
The newly formed entity is anticipated to be listed on either the New York Stock Exchange or the NASDAQ Stock Market in the US.
Post-separation, it is expected that Smithfield’s US and Mexico operations will still function as a subsidiary of WH Group, with its financial results remaining consolidated within the parent company’s financial reports.
This separation hinges on standard conditions, including approvals from the Hong Kong Stock Exchange, the board’s final decision, and a review by the US Securities and Exchange Commission.
WH Group, recognized as the largest pork producer globally, holds dominant positions in China, the US, and crucial European markets.
It owns subsidiaries such as Henan Shuanghui Investment & Development Co., Asia’s largest meat processor, and Smithfield Foods Inc., the leading pork company in the US.
WH Group’s acquisition of Smithfield Foods in 2013 for US$4.7 billion significantly boosted its status as a global leader in the pork industry.
Despite its prominent position, WH Group has faced a downturn in volumes and sales.
For fiscal year 2023 and the first quarter of 2024, the company reported a year-over-year net sales decline of 6.8% and 8.3%, respectively.
Since its inception in 1973 and subsequent acquisition by Thai Union in 2010, PFC has grown into the Group’s second-largest factory in Africa, employing around 1,100 people.
The factory supplies brands such as John West and MareBlu, along with private-label clients across Europe.
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