Smithfield Foods Shareholders to Vote on Chinese Takeover
By Amanda Brodhagen, Farms.com
Smithfield Foods investors will vote Tuesday on the company’s sale to a Chinese company – Shuanghui International Holdings Ltd.
The pending $7.1 billion purchase would offer $34 per-share for Smithfield shareholders. If approved by investors, the transaction will take effect on Thursday. If the deal is approved, it would be the largest acquisition of a U.S. business by a Chinese company.
If shareholders approve the takeover, Smithfield will become a private company, which will mean less public disclosure on certain items such as audited financial statements. The company will still have to submit tax returns and federal government regulations. Analysts say that they think the transaction will go.