Smithfield Foods to be acquired by Chinese Meat Processor
World’s largest hog, pork producer to be sold to China’s Shuanghui for $4.72B
By Amanda Brodhagen, Farms.com
Chinese meat processor Shuanghui International Holdings Ltd. has reached a deal to buy publically traded company Smithfield Foods Inc. for $4.72-billion (U.S.). The purchase values Smithfield at $7.1 billion, making this the largest Chinese takeover of a U.S. company.
In a news release, Smithfield CEO Larry Pope said "This is a great transaction for all Smithfield stakeholders, as well as for American farmers and U.S. agriculture." Smithfield shareholders will receive $34 per share, which is a 31 per cent premium on the company’s closing stock price of $25.97 on Tuesday. Both companies’ boards have approved the deal, which is subject to closing conditions – approval by Smithfield shareholders and from U.S. regulators before its final.
Hong Kong-based Shuanghui has 13 plants that produce more than 2.7 million tons of meat per year. Smithfield’s existing facilities and locations are to remain along with the collective bargaining agreements for 46,000 of Smithfield workers. The transaction is expected to be completed by the second-half of 2013.
China is the world’s biggest consumer of pork.