Shareholders approve Smithfield sale to Chinese company
September 24, 2013 | 06:57 PM
Shareholders of Virginia-based pork producer Smithfield Foods Inc. have approved a $4.7 billion takeover by China’s Shuanghui International, clearing the last major hurdle for a deal that would mark the largest purchase of an American company by a Chinese firm, The Los Angeles Times reported today.
More than 96 percent of votes went in favor of the sale, which was announced in May and required federal regulatory approval, the Times reported.
The deal was nearly scuttled by activist hedge fund Starboard Value LP, which tried to find alternate buyers.
With shareholder approval, the deal could be finalized by Thursday.
“This is a great transaction for all Smithfield stakeholders, as well as for American farmers and U.S. agriculture,” said C. Larry Pope, president and chief executive of Smithfield, in a statement. “The partnership is all about growth, and about doing more business at home and abroad. It will remain business as usual — only better — at Smithfield, and we look forward to embarking on this new chapter.”
National Farmers Union President Roger Johnson had a different view.
“It is a sad day for family farmers and consumers when the largest pork processing company in the United States is sold to a Chinese interest," Johnson said in a news release.
“Putting ownership of our food system in the hands of other countries does not bode well for the future of our agricultural marketplace. Congress should revisit the official approval process for such transactions with an eye toward assuring that our food systems are more stable, safe and secure, and are based on a model of family farmers and ranchers.”
More than 96 percent of votes went in favor of the sale, which was announced in May and required federal regulatory approval, the Times reported.
The deal was nearly scuttled by activist hedge fund Starboard Value LP, which tried to find alternate buyers.
With shareholder approval, the deal could be finalized by Thursday.
“This is a great transaction for all Smithfield stakeholders, as well as for American farmers and U.S. agriculture,” said C. Larry Pope, president and chief executive of Smithfield, in a statement. “The partnership is all about growth, and about doing more business at home and abroad. It will remain business as usual — only better — at Smithfield, and we look forward to embarking on this new chapter.”
National Farmers Union President Roger Johnson had a different view.
“It is a sad day for family farmers and consumers when the largest pork processing company in the United States is sold to a Chinese interest," Johnson said in a news release.
“Putting ownership of our food system in the hands of other countries does not bode well for the future of our agricultural marketplace. Congress should revisit the official approval process for such transactions with an eye toward assuring that our food systems are more stable, safe and secure, and are based on a model of family farmers and ranchers.”
