Shuanghui International Holdings Ltd., a Chinese meat processor, has agreed to purchase Smithfield Foods, Inc. for approximately $4.72 billion. China is a world leader in pork consumption and already an important market for U.S. pork.
Smithfield Foods, Inc. is the world’s largest pork producer with brands including Armour and Farmland. Smithfield shareholders will receive $34 per share, which is a 31% premium over the closing stock price of $25.97 yesterday. The boards of both companies unanimously approved the purchase that is pending approval from Smithfield shareholders. The deal is expected to close in the second half of the year and is valued $7.1 billion, including debt.