Government extends review of Smithfield sale to Chinese firm

WASHINGTON Wed Jul 24, 2013 6:03pm EDT

A sign advertising Smithfield hams hangs at the Taste of Smithfield restaurant and gourmet market in Smithfield, Virginia May 30, 2013. REUTERS/Rich-Joseph Facun

A sign advertising Smithfield hams hangs at the Taste of Smithfield restaurant and gourmet market in Smithfield, Virginia May 30, 2013.

Credit: Reuters/Rich-Joseph Facun

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WASHINGTON (Reuters) - The government has decided to take an additional 45 days to review a Chinese company's plan to purchase Smithfield Foods SFD.N, the world's largest pork producer said on Wednesday in a statement that expressed confidence the deal would close in the second half of 2013.

The sale of Virginia-based Smithfield, which has more than 46,000 employees in 25 states and four countries, to Shuanghui International Holdings for $4.7 billion would be the biggest Chinese takeover of a U.S. company.

The companies submitted the deal in June to the Committee on Foreign Investment in the United States, or CFIUS, an executive branch panel that examines foreign investment for potential threats to national security.

Many deals are approved during an initial 30-day review, but some transactions are given a second 45-day examination.

"Smithfield and Shuanghui International remain committed to working cooperatively with CFIUS throughout the process," Smithfield said in the statement confirming it had been notified of the panel's plan for an extended review.

"The CFIUS process is confidential and Smithfield and Shuanghui International do not intend to comment further on that process while it is ongoing. Smithfield and Shuanghui International continue to expect the transaction to close in the second half of 2013," the company added.

(Reporting by Doug Palmer; Editing by Peter Cooney)

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Comments (1)
marisa70394 wrote:
Not much to article but it says a lot. So, the US will investigate the firm that wants to buy Smithfield. I’m sure that they will find layers of government communist officials behind the deal. This is all about China being able to blame an American food company for China’s poor record of food quality. This is nothing but another way for China’s government to deflect criticism of their abysmal economic record.

Jul 24, 2013 6:14pm EDT  --  Report as abuse
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