Shuanghui/Smithfield deal passes federal review
By Lisa M. Keefe on 9/6/2013
The federal Committee on Foreign Investment in the United States (CFIUS) today blessed the acquisition of Smithfield Foods Inc. by Chinese-based Shuanghui International Holdings Ltd., Smithfield said in a news release.
CFIUS approval was important to the deal because the committee in charged with reviewing such international business deals to determine their effect, if any, on national security. The committee was expected to approve the proposal.
The transaction remains subject to Smithfield shareholder approval and other customary closing conditions. Smithfield’s shareholders are scheduled to vote on the transaction at a special shareholders meeting on Tuesday, September 24, 2013. Shuanghui International and Smithfield expect the transaction to close shortly thereafter.
Shuanghui International is buying Smithfield for $34.00 per share in cash. Upon closing the transaction, Smithfield will continue to operate under its existing brand names as a wholly owned subsidiary of Shuanghui International.