China’s biggest meat processor has offered $4.7bn in cash for Smithfield Foods, in what will be the largest Chinese takeover of a US company if completed.
Shuanghui International said the agreed deal with Virginia-based Smithfield, the world’s largest hog producer, would bolster its ability to feed China’s growing middle class while also addressing persistent concerns about food safety in the most populous country.
The deal will face scrutiny. But because Shuanghui has no US operations, it may be difficult for opponents to argue that the deal should be blocked on antitrust grounds or that it poses a threat to national security. “We’re not exporting tanks and guns and cyber security,” Larry Pope, Smithfield’s chief executive, said. “These are pork chops.”