A Wall Street Journal report said that shareholders of Smithfield Foods Inc unanimously voted for the approval of the USD4.7 billion proposed acquisition by Shuanghui International Holdings Ltd. In a special shareholder meeting on Tuesday, over 96% of the shareholders of the pork processor company approved the deal. The figure was enough to secure at least two-thirds of Smithfield's total outstanding shares, Smithfield said.
The buyout of Smithfield by Shuanghui would provide an opportunity for both companies. Smithfield would be able to increase pork exports in China, while Shuanghui would be able to amp up its knowledge in food safety and production technology.
The acquisition deal would be finalized on Thursday, and Smithfield would cease to be listed and traded on the New York bourse.
In a statement, Smithfield Chief Executive 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."
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