HONG KONG — Shuanghui International Holdings has received approval from the Committee on Foreign Investment (C.F.I.U.S.) in the United States to proceed with its acquisition of Smithfield Foods, Inc., the world’s largest pork processor, for $34 per share and assumption of Smithfield’s debt. The total value of the transaction is estimated to be $7.1 billion.
Established under the leadership of the Secretary of the Treasury, the C.F.I.U.S. is a federal, inter-agency committee made up of representatives from the departments of Defense, State, Commerce and Homeland Security. The committee’s function is to review how foreign investment in the United States may affect the country’s economic and national security.
The transaction remains subject to Smithfield shareholder approval and other customary closing conditions. Smithfield’s shareholders are scheduled to vote on the transaction at a special shareholders meeting on Sept. 24.
“This transaction will create a leading global animal protein enterprise,” said Zhijun Yang, chief executive officer of Shuanghui International. “Shuanghui International and Smithfield have a long and consistent track record of providing customers around the world with high-quality food, and we look forward to moving ahead together as one company.”