US company Tyson Foods plans to sell its poultry business in China

Tyson Foods, a U.S. meat and convenience food manufacturer, intends to sell its chicken business in China.

The sale is in its early stages and the company has hired Goldman Sachs (GS.N) to advise on the sale.

The Chinese poultry business is worth about $1.1 billion in annual sales, one source said, although it's not yet clear what valuation Tyson Foods wants for it.

With third-quarter revenue and earnings falling short of Wall Street estimates, Tyson announced this month that it is reviewing its operations and closing four more poultry farms in the US.

Observers note that due to weak demand during the COVID-19 epidemic and rising feed prices as a result of the Russian-Ukrainian war, the meat market in China has become more difficult. The profitability of livestock farms has also declined over the past two years.

In recent years, a number of international corporations have sold their operations in China or reduced their stakes in recent years, bankers said, as some of them found it difficult to make the desired profit due to slowing economic growth, fierce local competition or geopolitical problems in the country.

Foreign corporations have sold $8.4 billion worth of Chinese assets this year, up from $13.5 billion in 2022, according to Dealogic statistics.