You have reached your limit of free articles this month.

Enjoy unlimited access to SpringfieldNewsSun.com

Starting at just 99¢ for 8 weeks.

GREAT REASONS TO SUBSCRIBE TODAY!

  • IN-DEPTH REPORTING
  • INTERACTIVE STORYTELLING
  • NEW TOPICS & COVERAGE
  • ePAPER
X

You have read of premium articles.

Get unlimited access to all of our breaking news, in-depth coverage and interactive features. Starting at just 99c for 8 weeks.

X

Welcome to SpringfieldNewsSun.com

Your source for Clark and Champaign counties’ hometown news. All readers have free access to a limited number of stories every month.

If you are a News-Sun subscriber, please take a moment to login for unlimited access.

breaking news

Ohio House budget proposal would eliminate Municipal Clerk’s office

China’s Shuanghui in $4.7B deal for Smithfield


By Michael Felberbaum

AP Business Writer

RICHMOND, Va. (AP) — Shuanghui International Holdings Ltd. has agreed to buy Smithfield Foods Inc. for approximately $4.72 billion, the largest acquisition of a U.S. company by a Chinese company.

Hong Kong-based Shuanghui owns a variety of global businesses that include food, logistics and flavoring products and is the majority shareholder in China’s largest meat processing enterprise.

Smithfield, the world’s biggest pork producer, owns brands such as John Morrell, which is based in near Cincinnati and has 525 area employees. Other brands owned by Smithfield include Armour, Farmland and its namesake.

Shareholders of Smithfield will receive $34 per share under terms of the deal announced Wednesday — a 31 percent premium to the Smithfield, Va., company’s closing stock price of $25.97 on Tuesday.

Both companies’ boards have unanimously approved the transaction, which still needs approval from Smithfield’s shareholders. The transaction may also be subject to review by the U.S.’s Committee on Foreign Investment, which evaluates the potential national security effects of transactions.

Chinese investment in the U.S. is still comparatively low but has risen sharply in recent years. China has accused the U.S. of discriminating against its companies, although analysts say American firms face bigger obstructions investing in China.

The companies put the deal’s total value at about $7.1 billion, including debt. Smithfield Foods has about 138.8 million outstanding shares, according to FactSet. Smithfield’s stock will no longer be publicly traded once the deal closes.

Shuanghui has 13 facilities that produce more than 2.7 million tons of meat per year. Under the agreement, there will be no closures at Smithfield’s facilities and locations, including its Smithfield, Va., headquarters in the historic southeastern Virginia town of about 8,100 where it was founded in 1936, the companies said.

Smithfield’s existing management team will remain in place and Shuanghui also will honor the collective bargaining agreements with Smithfield workers. The company has about 46,000 employees.


Reader Comments ...


Next Up in Business

INSIDE LOOK: Nearly $1M home for sale near Piqua
INSIDE LOOK: Nearly $1M home for sale near Piqua

A custom-built home on U.S. 36 near Piqua is for sale for more nearly $1 million. The custom two-story home is located at 1538 E. U.S. 36 outside Piqua in Miami County and is listed for sale by Coldwell Banker at $949,900. The house has 8,500 square feet of living space, with five bedrooms, five full baths, 3 half baths, 3 fireplaces, study, media...
Nordstrom selling work jeans covered in fake mud for $425 
Nordstrom selling work jeans covered in fake mud for $425 

  After it was ridiculed for selling designer rocks at Christmas, Nordstrom may have topped itself with its latest offer. The department store is offering a pair of jean covered in fake mud for a whopping $425. The retailer described its new Barracuda Straight Leg Jeans on its website as "rugged Americana workwear that's seen some hard-working...
STORE CLOSINGS: Sears to close 50 auto centers
STORE CLOSINGS: Sears to close 50 auto centers

Sears Holdings is set to close 50 Auto Center locations, the company announced. Sears updated investors last week on its strategic restructuring program, stating the company aimed to save $1.25 billion through some store closures in 2017. The company already announced it would close 108 Kmart stores and 42 Sears locations. » RETAIL APOCALYPSE...
Two area health systems named Top 15 in nation
Two area health systems named Top 15 in nation

Kettering Health Network and Mercy Health have been named two of the Top 15 health systems in the nation by the international business research firm Truven Health Analytics. It’s the fifth appearance on the Top 15 list for the Dayton-based Kettering system, comprised of eight hospitals, including Kettering Medical Center, Fort Hamilton, Soin...
675 Ohioans complained about mortgage servicer sued by feds
675 Ohioans complained about mortgage servicer sued by feds

State and federal authorities have sued mortgage servicer Ocwen Financial Corp., saying the company botched the handling of millions of mortgage accounts, including 675 Ohio complaints. The Consumer Financial Protection Bureau said Thursday that the accounts Ocwen serviced were riddled with errors throughout the repayment process. It said the company...
More Stories