Source: AP / The Washington Post
RICHMOND, Va. — Shuanghui International Holdings Ltd. has agreed to buy Smithfield Foods Inc. for approximately $4.72 billion, the largest acquisition of a U.S. company by a Chinese company. The deal would take the world’s biggest pork producer private.
Hong Kong-based Shuanghui owns a variety of global businesses that include food, logistics and flavoring products and is the majority shareholder in China’s largest meat processing enterprise. Smithfield owns brands such as Armour, Farmland and its namesake.
Shareholders of Smithfield will receive $34 per share under terms of the deal announced Wednesday — a 31 percent premium to the Smithfield, Va., company’s closing stock price of $25.97 on Tuesday.
Both companies’ boards have unanimously approved the transaction, which still needs approval from Smithfield’s shareholders. The transaction may also be subject to review by the U.S.’s Committee on Foreign Investment.
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