Chinas's Shuanghui in $4.7B deal for Smithfield
- Photos (1)
Smithfield Foods Inc. Cook's brand ham sits on display at a supermarket in Princeton, Illinois. Chinese meat processor Shuanghui International Holdings Ltd. has agreed to buy Smithfield Foods for approximately $4.72 billion.
NEW YORK — Chinese meat processor Shuanghui International Holdings Ltd. has agreed to buy Smithfield Foods for approximately $4.72 billion.
Shareholders of Smithfield, the world's biggest pork producer, will receive $34 per share under terms of the deal announced Wednesday. That is 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.
The companies put the deal's total value at about $7.1 billion, including debt. Smithfield Foods Inc. — whose brands include Armour, Farmland and its namesake — has about 138.8 million outstanding shares, according to FactSet.
Smithfield's second-largest shareholder, Continental Grain Co., has been pushing Smithfield Foods Inc. to consider splitting itself up.
Smithfield's stock surged $7.23, or 27.8 percent, to $33.20 before the market open.
- Share Facebook Twitter
Article sent to (required)E-mail
Article sent from (required)E-mail Name
Subject Line (article title)
Message (optional)Success - Article sent Click to close
Interested in reusing this article?
Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.
The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.Need more information about reprints? Visit our Reprints Section for more details.
Contact information ( * required )Name * Company Telephone * E-mail *
Article InformationTitle URL
Message (optional)Success - Reprint request sent Click to close