Cargill to sell China poultry unit to private equity firm
BEIJING, May 31 (Reuters) – U.S. agribusiness giant Cargill said it is selling its poultry business in China to private equity firm DCP Capital, exiting a Chinese meat market that has become increasingly challenging, especially for foreign players.
The sale of the unit known as Cargill Protein China is subject to regulatory approvals but is expected to close this year, Cargill said in a statement on Wednesday.
It did not give a transaction price and DCP declined to comment on the deal.
China is the world’s No.2 poultry producer after the United States, producing about 19 million tonnes of chicken meat last year.
Privately-owned Cargill, one of the top poultry producers in the U.S., started its China poultry business in 2011, breeding, raising and processing chickens in Chuzhou in eastern Anhui province.
In 2019 it added a $48.8 million plant to the operations, which can process 65 million birds annually.
Read full article Share on twitter