China’s Shuanghui to Buy Smithfield Foods for $4.7 Billion

May 29th, 2013

Via: Reuters:

China’s Shuanghui International said it would buy Smithfield Foods Inc (SFD.N) for $4.7 billion in cash to help satisfy growing demand for U.S.-made pork in its home market, but the deal may raise concerns in the United States.

The agreement, announced on Wednesday, comes after Smithfield’s largest shareholder agitated for change at the Virginia-based pork producer – the world’s largest – including a call to break up the company.

The deal is subject to review by the U.S. Committee on Foreign Investment in the United States, or CFIUS, a government panel that reviews transactions that would bring U.S. businesses under foreign control, Smithfield said in a statement.

The transaction would be the largest Chinese takeover of a U.S. company, with an enterprise value of $7.1 billion, which includes the assumption of debt.

Posted in Dictatorship, Economy, Food | Top Of Page

One Response to “China’s Shuanghui to Buy Smithfield Foods for $4.7 Billion”

  1. tal says:
    May 30, 2013 at 2:45 pm

    Smithfield has had to wean their pigs off Ractopamine, first. How’s that for irony (or something)?

    Behind China’s U.S. pork deal, fears over feed additives
    http://www.reuters.com/article/2013/05/30/us-usa-smithfield-ractopamine-analysis-idUSBRE94T03520130530

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