Smithfield Foods, the world’s number one pork producer, is set to to be bought out by China’s Shuanghui International in a 3.6 billion euro deal. Shuanhui has agreed to pay approximately 26 euro a share for the firm.
Smithfield shares surged during Wednesday’s trade on the back of the news.
The transaction, which is expected to go ahead following approval by regulators, would mark the largest takeover of any US firm by a Chinese company. The deal will face the rigorous scrutiny of the US Committee on Foreign Investment (CFIUS), a government panel that assesses national security risks.
Eastablised in 1936, Smithfield grew from a small packing plant into a global giant, employing 46,000 people in the US alone.
Shuanghui, a privately held company based in Hong Kong, is already a majority shareholder in China’s largest meat processor, Henan Shuanghui Investment and Development.