In 2013, China’s WH Group, which was then known as Shuanghui International, made a significant acquisition by purchasing Smithfield Foods, the largest pork producer in the United States, for $4.7 billion. This monumental deal was not only the largest purchase of an American company by a Chinese firm at the time but also marked a pivotal moment in the global food industry. The acquisition included more than 146,000 acres of U.S. farmland, making WH Group one of the most prominent foreign owners of agricultural assets in the United States.
Despite the change in ownership, Smithfield Foods has continued to operate largely as it had before the acquisition. With over 40 facilities across the United States and a strong presence in international markets, Smithfield’s day-to-day management has remained under the control of U.S. executives. These executives continue to oversee the operations of the company, ensuring that the acquisition did not disrupt the management structure or the way the company conducts business.
Smithfield Foods, headquartered in Virginia, is a major player in the U.S. pork industry and has also expanded its presence internationally, becoming a recognized name in the global meat market. Despite the acquisition, WH Group has largely maintained a hands-off approach in the management of Smithfield’s daily operations, allowing U.S. leadership to continue to run the company effectively.
As part of its ongoing strategy, Smithfield is now preparing for a public offering in 2025. The company plans to raise up to $940 million through an Initial Public Offering (IPO). This could potentially be one of the largest IPOs in the U.S. food sector since 2021, signaling a significant shift in the company’s financial strategy. However, despite the forthcoming IPO, WH Group is expected to retain majority control of Smithfield Foods after the offering. This means that even though Smithfield’s stock will become publicly available, the majority of decision-making power and control will remain in the hands of WH Group.
The IPO represents an important milestone for Smithfield Foods, offering the company an opportunity to expand its financial base while continuing to operate as a global leader in the meat industry. By taking this step, Smithfield aims to enhance its resources and strengthen its position in the competitive global food market, while continuing to benefit from the strong backing of its parent company, WH Group.
The ongoing partnership between Smithfield Foods and WH Group underscores the growing influence of Chinese companies in the U.S. food industry, highlighting the global nature of business today. Smithfield’s future remains promising, with the company continuing to build upon its strong foundation in both the U.S. and international markets.
Source: Metro.co.uk
