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China's WH Group targets beef and poultry assets in U.S. and Europe

Smithfield Foods Inc's owner, China-based WH Group Ltd is scouting for U.S. and European beef and poultry assets to buy, in a move that would sharpen its rivalry with global meat packers Tyson Foods Inc and JBS SA. Expanding into beef and poultry would bring U.S.-based Smithfield  the world's largest pork producer, more in line with competitors Tyson, JBS and BRF SA, which each process pork, chicken and beef. Smithfield Chief Executive Ken Sullivan told Reuters he is interested in the potential of diversifying into other meats to broaden the company's product portfolio, though no deals were imminent. "We're a food company," he said. "No one said that we're strictly a pork company." Chein declined to provide a timeline for expanding into the U.S. beef and poultry business or say how much money the company aims to spend. Its search reflects wider disruption in the agriculture sector, where historically low grain prices have triggered a wave of consolidation among global seed and chemical companies. Cheap grain and strong demand for meat have generally helped increase operating margins for producers of pork, beef and chicken.

 

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Reuters
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