Skip to comments.Chinese firm in $4.7bn takeover of US pork giant Smithfield Foods
Posted on 05/29/2013 9:28:58 AM PDT by DeaconBenjamin
China's Shuanghui International has made a $4.7bn bid to takeover Smithfield Foods, the world's largest pork producer, in what would be the biggest takeover of a US company by a Chinese firm to date if it passes regulatory hurdles.
The deal is likely to run into heavy opposition in Washington, where a series of Chinese takeovers have been blocked by politicians and regulators. Shuanghui, also known as Shineway, is China's largest pork producer and is part owned by an investment firm run by Goldman Sachs.
A takeover would give Smithfield entry into China, one of the biggest and fastest growing markets for pork. "This is a great transaction for all Smithfield stakeholders, as well as for American farmers and US agriculture," said Larry Pope, president and chief executive officer of Smithfield. "It will be business as usual only better."
Shuanghui chairman Wan Long called the deal an "historic opportunity". Wan is a high-profile business leader in China, where he is known as the country's "No 1 butcher" because his company slaughters more than 15m pigs a year.
In March, local media reported that Wan told the National People's Congress that he planned to make Shuanghui a major multinational company and one of the world's largest meat processors.
"The acquisition provides Smithfield the opportunity to expand its offering of products to China through Shuanghui's distribution network. Shuanghui will gain access to high-quality, competitively priced and safe US products, as well as Smithfield's best practices and operational expertise," he said.
The acquisition is subject to regulatory approval by the committee on foreign investments in the United States. Several large takeovers by Chinese companies have been thwarted in the recent past.
(Excerpt) Read more at guardian.co.uk ...
Well you didn’t expect them to waste all those millions of dead hogs floating down the Yangtze river did you?
“The deal is likely to run into heavy opposition in Washington, where a series of Chinese takeovers have been blocked by politicians and regulators. Shuanghui, also known as Shineway, is China’s largest pork producer and is part owned by an investment firm run by Goldman Sachs.”
Goldman Sachs. That’s all we really need to know that this deal has already been blessed by Obama.
Why do we have free trade with China when they are a closed market and they have to own the firms before they have access to the Chinese market?
My dad loves Smithfield bacon. When he finds out China has acquired them, he’s going to be sick.
That’s okay we still make planes. /idiot free trader mode off
Nope, Smithfield, VA
“When he finds out China has acquired them, hes going to be sick.”
Don’t be surprised if American pork products are shipped to China and Americans get the “Far Eastern meat-lovers special” - pork, rat, horse, as well as the mystery meat of the day.
I expect them to close down the U.S. factories and make it in China. So yes, we will be getting rat meat.
We don’t have free trade with China, and it’s probably been pointed-out to you more than a dozen times.
Nothing taken into our bodies should be made by these people.
They have proven beyond even a progressive communist’s doubt that they cannot be trusted to provide food or medicine or even toys without some sort of contamination. Much the same can be said about India.
I guess when they live among a billion or so people, human life becomes completely irrelevant in their thought process.
There are no guarantees that they will not bring that wonderful, life is irrelevant, culture with them if they are allowed to operate food production in the USA.
What we have is about as close as it gets from our side. They have most favored nation status. And tariffs are low.
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