Shuanghui International announce to take over a $4.7 billion purchase of Smithfield Foods, the biggest pork producer in the United States. Besides, Shuanghui will also get out of the red of $2.4 billion for
Smithfield Foods, so the takeover is up to $7.1 billion. As estimated, this deal will be finished in the second half year. Shuanghui International promise that the Smithfield would continue operating as an independent business, free of changes to its management structure, labor arrangements or safety standards. We will not try to change the company, the leaders, the products. We want it to be the same, but better.
The CEO of Smithfield Food Larry Pope said, it will be a great deal for both stockholders and farmers. He stress on the stable operation of Smithfield and will accelerate expansion in global market.
Mr. Wan continued: “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 U.S. products, as well as Smithfield’s best practices and operational expertise. We look forward to working with Larry Pope and the many employees at Smithfield.”
This transaction provides Smithfield shareholders with significant and immediate cash value for their investment, and ensures that Smithfield will continue to execute on its strategic priorities. Their directors is pleased with the outcome of the process they followed leading to this transaction, and unanimously believe that this combination with Shuanghui is in the best interests of the company, our shareholders and all Smithfield stakeholders.
Shuanghui will take advantage of this chance to make vertical integration industry chain including “boar-fatten pig-pellet feeds-slaughter-deep processing-brand pork”. While effectively prevent food safety risks, Shunghui will cut into US market as premium brand pork field so as to share the stable market in US.