Pork producer WH Group has revealed plans to spin off its wholly owned Smithfield US and Mexico subsidiaries and make them public in New York, US.

The board of directors of WH Group announced that the company submitted an application to the Hong Kong Stock Exchange, wher it is listed, on July 12.

Smithfield will remain a subsidiary of the global pork giant and its financial results will continue to be consolidated into WH Group’s books after its listing on either the New York Stock Exchange or the Nasdaq Stock Market.

Reports of Smithfield US preparing to go public have emerged since October last year, with WH Group working with financial institutions to make the move possible.

The Chinese pork heavyweight acquired Virginia-based Smithfield in 2013 in a US$4.7 billion deal, tapping into the massive meat trade between China and the US. At the time, the deal was one of the most significant acquisitions of an American company by a Chinese business, culminating in Smithfield’s delisting from NYSE, wher it was initially listed.

The new entity went public in Hong Kong the following year after closing a US$2.3 billion round.

WH Group says it is still determining the details of the proposed spin-off and the development is subject to approval from the Stock Exchange, the board’s final decision and clearance from the US Securities and Exchange Commission, following which the proposal may or may not proceed.

Recent business moves
Smithfield terminated contracts with 26 hog farms in Utah and 36 hog production facilities in Missouri last year, followed by the closing of its ham boning facility in Altoona, Iowa. This was aimed at increasing the efficiency of its supply chain amid an oversupply of pork, an increase in feed costs and a weak domestic demand for meat.

The terminations impacted over 500 workers in multiple locations, with meat and poultry companies feeling the heat of rising costs in a challenging market.

Besides being an established player in pork and hog production, Smithfield has been nclick="updateothersitehits(Articlepage,External,OtherSitelink,WH Group plans to spin off pork giant Smithfield’s US and Mexico businesses for IPO,WH Group plans to spin off pork giant Smithfield’s US and Mexico businesses for IPO,342055,https://www.foodingredientsfirst.com/news/pushing-into-plant-protein-pork-heavyweight-smithfield-foods-debuts-soy-based-line.html, article,WH Group plans to spin off pork giant Smithfield’s US and Mexico businesses for IPO);return no_reload();">diversifying product ranges to accommodate plant-based protein demands and a growing meat reduction trend with a soy-based protein portfolio under its Pure Farmland brand.

“At its core, Smithfield Foods is a global food company with a focus on protein. The plant-based protein space is growing rapidly, and more consumers are actively trying to consume less meat, including traditional ‘meat lovers’ as well as flexitarians,” John Pauley, chief commercial officer for Smithfield Foods told Food Ingredients First in a previous interview.