Smithfield Foods announced that its shareholders have voted in favor of proposed merger with China's Shuanghui International for $4.7bn, in a development which will be the largest ever takeover of a US company by a Chinese firm.
At a special meeting held on 24 September, over 96% votes cast were in favor of the Chinese deal, representing about 76% of Smithfield's total outstanding shares of common stock as of the record date for the special meeting.
Smithfield president and CEO C. Larry Pope said, "This is a great transaction for all Smithfield stakeholders, as well as for American farmers and U.S. agriculture. The partnership is all about growth, and about doing more business at home and abroad. It will remain business as usual -- only better -- at Smithfield, and we look forward to embarking on this new chapter."
In May, Shuanghui International has agreed to acquire US-based pork producer and processor Smithfield Foods in an all-cash deal valued at $7.1bn, including the assumption of net debt.
As per the terms, Smithfield shareholders will receive $34 per share in cash for each share of Smithfield common stock that they own.
Following the completion of the deal, Smithfield will continue to operate under its existing brand names as a wholly-owned subsidiary of Shuanghui International.