0604Smithfieldsr.cfm Malatya Haber China's Shuanghui in $4.7B deal for Smithfield
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China's Shuanghui in $4.7B deal for Smithfield

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RICHMOND, Virginia (AP)—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.

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, the world’s biggest pork producer, owns brands such as Armour, Farmland and its namesake.

Shareholders of Smithfield will receive $34 per share under terms of the deal announced May 29—a 31 percent premium to the Smithfield, Va., company’s closing stock price of $25.97 on May 28.

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, which evaluates the potential national security effects of transactions. The process typically includes a 30-day initial review, followed by a 45-day investigation before making a recommendation to the president.

Chinese investment in the U.S. is still comparatively low but has risen sharply in recent years. China has accused the U.S. of discriminating against its companies, although analysts say American firms face bigger obstructions investing in China.

The companies put the deal’s total value at about $7.1 billion, including debt. Smithfield Foods has about 138.8 million outstanding shares, according to FactSet. Smithfield’s stock will no longer be publicly traded once the deal closes.

Date: 6/10/2013



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