UPDATE 1-U.S. government extends review of Smithfield sale to Chinese firm

Wed Jul 24, 2013 6:01pm EDT

WASHINGTON, July 24 (Reuters) - The U.S. government has decided to take an additional 45 days to review a Chinese company's plan to purchase Smithfield Foods, 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.

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Comments (3)
CoRavensFan wrote:
Considering they recently had a whole slew of dead pigs floating in a river in China, I won’t be buying Smithfield ham once this deal goes through.

Jul 24, 2013 6:27pm EDT  --  Report as abuse
Blackshield67 wrote:
Right now I don’t trust them !! And will not risk my family to them !! Export it all !!

Jul 24, 2013 7:25pm EDT  --  Report as abuse
fingerlakes54 wrote:
It’s very scary that a foreign company may purchase one of America’s largest food producers. In the event the USA experiences food shortages for some reason–will we wave to the trucks driving away with food raised here in America? I think that would be a pitiful site. It happened to the Irish–They grew the food for for Ireland and Britain and when a crop failure happened–thee British took the remaining food to Britain. The Irish asked what were they to do for food. The Brits told them to stay in Ireland and starve or get on a boat to America. Study history –this is dangerous stuff.

Jul 25, 2013 1:10am EDT  --  Report as abuse
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