Sept 24 Smithfield Foods Inc
shareholders on Tuesday approved the pork giant's $4.7 billion
sale to Shuanghui International Holdings Ltd in what
is shaping up as the biggest acquisition of a U.S. company by a
The closely watched transaction, valued at $7.1 billion
including debt, is expected to close by Sept. 26.
The deal, which aims to satisfy China's increasing appetite
for pork, marries two of the world's largest pork producers and
had faced scrutiny over China's high-profile food safety
failures, concerns over U.S. pork supplies and U.S. national
But earlier this month, the U.S. Committee on Foreign
Investment cleared the way for the deal, removing an important
More than 96 percent of the votes cast at a special
Smithfield shareholder meeting on Tuesday were in favor of the
acquisition. The votes cast represented 76 percent of
Smithfield's outstanding common shares, the company said in a
Under the terms of the deal, Smithfield shareholders will
receive $34 cash for each share of Smithfield common stock they
Shares in Smithfield were unchanged at $33.98 in midday
After the acquisition closes, Shuanghui must then decide the
fate of Spanish packaged meats company Campofrio, of which
Smithfield holds a 37 percent stake.
Shuanghui can decide to buy the remaining stake in Campofrio
which it does not own, or will have to reduce its position to
less than 30 percent.
Smithfield had previously held talks to acquire a
controlling interest in Campofrio in 2011 but scrapped plans,
citing a weak European economy.
"We will comply with the applicable Spanish decrees on this
matter," said a spokesperson for Shuanghui International. "After
closing our merger, we will notify the Spanish stock exchange
commission of our intended actions in this regard."