China's Shuanghui International has announced that the Committee on Foreign Investment in the United States (CFIUS) has approved its proposal to acquire Smithfield Foods.
Smithfield and Shuanghui International also received governmental merger clearance in Ukraine; however, the transaction is subject to Smithfield's shareholder approval and other customary closing conditions.
At a shareholders meeting, which is scheduled to be held on 24 September, Smithfield's shareholders are set to vote on the transaction. The parties expect to complete the transaction shortly thereafter.
Shuanghui International CEO Zhijun Yang said that this transaction will create a leading global animal protein enterprise.
"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," Yang added.
Smithfield president and CEO C. Larry Pope said, "We are pleased that this transaction has been cleared by CFIUS, and we thank the Committee for its careful attention to this review."
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 agreed terms, Smithfield shareholders will receive $34 per share in cash for each share of Smithfield common stock that they own.
Following the transaction, Smithfield will continue to operate under its existing brand names as a wholly-owned subsidiary of Shuanghui International.
