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Smithfield Chinese Deal Approved By U.S. Government

|Includes:Smithfield Foods Inc. (SFD)

Originally published at www.seclive.com

The U.S. Committee on Foreign Investment in the United States (CFIUS) has approved the $4.7B purchase of Smithfield Foods (NYSE:SFD) by Shuanghui International. Shuanghui, China's largest pork producer would instantly become the world's largest pork producer, a title held by the Smithfield, Virginia company. If approved by Smithfield shareholders on September 24, the deal is expected to close not long after. Executives from both Smithfield and Shuanghui were pleased with the favorable consideration by CFIUS, remarking that both companies look forward to moving ahead as one company. U.S. lawmakers have long been concerned about potential national security concerns by having the Chinese own such a prominent U.S. food company, with Shuanghui not having a clean food safety record.

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Stocks: SFD