The acquisition of Smithfield Foods (UNKNOWN:UNKNOWN) by Chinese meat producer Shuanghui International Holdings received clearance from the Committee on Foreign Investment in the United States, the two companies announced today. The committee reviews such issues as national security concerns when U.S. businesses are acquired by foreign-controlled entities. The two companies also said the merger received governmental clearance in the Ukraine.
Noting the acquisition will create a leading global animal protein business, Shuanghui International CEO Zhijun Yang said, "Shuanghui International and Smithfield have a long and consistent track record of providing customers around the world with high-quality food, and we look forward to moving ahead together as one company."
Under terms of the merger agreement that was announced on May 29, Smithfield shareholders will receive $34.00 per share in cash for each share of Smithfield stock that they own. Upon consummation of the transaction, Smithfield will continue to operate under its existing brand names as a wholly owned subsidiary of Shuanghui International.
Headquartered in Smithfield, VA, Smithfield Foods is a $13-billion global food company, and the world's largest pork processor and hog producer. Shuanghui International, which is based in Hong Kong, is a privately held company that owns a variety of businesses that include food and logistics enterprises, one of which is China's largest meat processor, Henan Shuanghui Investment & Development Co.
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