Tyson Foods Inc. is weighing up the possibility of pulling out of its business in China, sources familiar with the matter revealed. This includes the potential sale of the company’s Chinese business in its entirety, including its local factories and distribution centers.
Currently, the largest US meat company, Tyson Foods may still decide to remain in China, the sources confirmed as deliberations are still in their early stages. Earlier reports suggested that the US foods giant had been in talks with investment manager Goldman Sachs Group Inc over taking on an advisory role as Tyson Foods looks to sell its poultry business.
Having opened its first factory in China in 2001, Tyson Foods’ operations in China include span breeding, slaughtering, processing, and distribution of chicken, beef, and pork products. Should Tyson Foods decide to depart from the Chinese market, it would follow in the footsteps of fellow US food corporation Cargill Inc., which decided to sell its poultry operations in China to private equity firm DCP Capital.