left corner left corner
China Daily Website

Largest takeover brings home the bacon

Updated: 2013-09-29 11:16
( English.news.cn)

The biggest Chinese acquisition of a U.S. company was finalized on Thursday, setting the stage for increased pork imports.

Hong Kong-based Shuanghui International's 7.1 billion U.S. dollar acquisition of Smithfield Foods was sealed on Thursday after U.S. regulators gave it the go-ahead earlier this month.

The deal gives the world's largest pork producer unparalleled access to a market that promises continuous growth in pork demand.

Before the deal, Smithfield already exported one fourth of its pork products to China, where annual pork imports hover around 400,000 tonnes.

"Smithfield will obtain stable market share in China, the world's largest and fast-growing pork market," said Mei Xinyu, a foreign trade expert at the Ministry of Commerce.

In recent years Smithfield has eyed overseas markets to boost its margins as fierce competition in the saturated U.S. market sapped growth.

"With this deal, Smithfield will see its growth buoyed again by the enormous Chinese market," said Feng Yonghui, chief analyst with Beijing Zhongke Yiheng Modern Farming Information and Technological Institute.

The completion of the deal came after four months of heated debate in the Unite States over its potential impact on food safety and supplies in the U.S. market.

Both Shuanghui and Smithfield assured shareholders and regulators that the acquisition will not result in any material changes to the U.S. company, with CEO Larry Pope saying it will be "business as usual."

Largest takeover brings home the bacon

Largest takeover brings home the bacon

Let's get crabby!

Reaching across asiaUpdated 

Previous Page 1 2 Next Page