Smithfield Foods to be acquired by Chinese Meat Processor

May 29, 2013

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

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.

Video: Early Fall Colors | Scenic Ontario Road Trip!

All adventures must come to an end, but not without one more journey! Join The Wandering Shepherds as we say farewell to our cozy Calabogie cottage and take the scenic road trip home to Ewetopia Farms. Our first stop was a breathtaking hydroelectric generating station, framed by cliffs, rushing water, and brilliant fall leaves that seemed to have changed overnight. From there, we meandered along winding backroads through lakes and hills, soaking in the spectacular autumn scenery. This year, the colors seemed to arrive earlier than usual—perhaps due to the summer’s drought? Whatever the reason, it was an unforgettable display of Ontario’s fall beauty. Finally, our holiday drew to a close as we pulled back into Ewetopia Farms, ready to return to the sheep and our daily vlogs. But this trip reminded us how important it is to pause, explore, and appreciate the simple beauty around us.