China's Shuanghui makes bid for Smithfield

摘要

Hong Kong-based Shuanghui International Holdings Ltd., a majority shareholder of China's largest meat-processing enterprise, has entered an agreement to acquire Smith-field Foods Inc. for approximately $7.1 billion, including assumption of debt. The acquisition positions Smithfield to expand its offerings in China through Shuanghui's distribution network. Shuanghui will acquire all of Smithfield's outstanding shares for $34 per share in cash, which is a 31 percent premium to Smithfield's closing stock price of $25.97 on May 28. Smithfield's stock price rose nearly 28 percent to $33.20 before the market opened on May 29. Upon closing of the transaction, Smithfield's common stock will no longer be publicly traded, and the company will become a wholly owned independent subsidiary of Shuanghui. The deal is expected to close in the second half of 2013.