Dive Summary:
- The Senate Agriculture Committee will discuss the pending acquisition of Smithfield Foods Inc. by Chinese meat producer Shuanghui International during a Wednesday hearing.
- Under examination in the hearing, in which Smithfield CEO Larry Pope is expected to speak, will be the purchase, how American food safety is addressed by the government review process of foreign acquisitions and how the U.S. food supply is impacted by foreign ownership.
- The $7.1 billion deal announced in May is the largest Chinese takeover of a U.S. company to date and still requires regulatory and shareholder approvals, but is expected to close later this year.
From the article:
... Members of the committee have previously raised questions over the proposed deal. They also asked the Treasury Department to include both the U.S. Department of Agriculture and the Food and Drug Administration in the government's review of the sale.
The proposed deal comes at a time when China has had serious food safety concerns, some of which have included Smithfield's suitor. ...