The deal is subject to review by the US Committee on Foreign Investment in the US, a government panel that reviews transactions that would bring US businesses under foreign control.
The Guardian says it comes ‘at a time when China has had serious food safety concerns, some of which have included Smithfield’s suitor, Hong Kong-based Shuanghui’.
Larry Pope, Smithfield’s CEO, said in a conference call on Wednesday that the transaction “preserves the same old Smithfield, only with more opportunities and new markets and new frontiers”.
He added: “People have this belief … that everything in America is made in China. Open your refrigerator door, look inside. Nothing in there is made in China because American agriculture is the most competitive and efficient in the world.”
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