Global food products major Tyson Foods (NYSE:TSN) is looking to sell its poultry business in China, according to Reuters.
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Reportedly, the processed foods provider has roped in Goldman Sachs as an advisor and has already sent out preliminary details to prospective buyers. The development is part of a broader corporate drive to step away from China and for Tyson, a part of its drive to lower costs. The company is taking a relook at all of its operations and is shuttering four chicken plants in the U.S. as well.
The Chinese economy currently remains in a slump, with rising unemployment rates and weak demand. Additionally, feed prices in the country have been increasing even as domestic competition remains heightened.
Tyson has been operational in China since 2001 and has multiple R&D centers, processing plants as well as breeding farms in the country. Interestingly, Tyson launched two new factories in China only two months ago.
Overall, the Street has a $52 consensus price target on Tyson Foods alongside a Hold consensus rating. Shares of the company have tanked nearly 33% over the past 52 weeks.
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