Dive Summary:
- The Committee on Foreign Investment in the United States approved Shuanghui International's purchase of U.S. pork giant Smithfield Foods on Friday.
- The controversial $4.7 billion deal—the largest takeover a U.S. company by a Chinese firm to date—was announced in May, but could be held up by an activist investor group that plans to vote against the deal on Sept. 24 and seek interested parties willing to pay more than Shuanghui's proposed $34 a share.
- Some lawmakers in Washington are concerned about the effect the deal could have on the U.S. pork supply, particularly as it pertains to food safety, as well as the potential for the deal to spark further Chinese takeovers of U.S. companies.
From the article:
... Smithfield shareholders are expected to vote on the takeover on Sept. 24. The deal is expected to close soon after, the companies said.
"This transaction will create a leading global animal protein enterprise," said Zhijun Yang, Shuanghui's chief executive. "Shuanghui International and Smithfield have a long and consistent track record of providing customers around the world with high-quality food, and we look forward to moving ahead together as one company." ...
