Shuanghui International managing director Zhijun Yang said the Chinese company's purchase of Smithfield Foods is part of a plan to grow as a global pork producer and no plans are in motion to expand into other animal proteins.
"The intention of this transaction is to build a leading pork producer," Yang said during a conference call on May 29, just after the deal was announced. "Shuanghui is primarily focused on the processing of pork protein. Other than pork, for now we do not have intentions of expanding into other proteins."
Smithfield Foods, Inc. and Shuanghui International Holdings Limited announced that they have entered into a definitive merger agreement that values Smithfield at approximately $7.1 billion, including the assumption of Smithfield's net debt. Shuanghui International is the majority shareholder of Henan Shuanghui Investment & Development Co., which is China's largest meat processing enterprise and China's largest publicly traded meat products company as measured by market capitalization. The agreement has been approved by the boards of both organizations.
"Together, we can be a global leader in animal protein," Yang said. "China and the U.S. are the most important markets. We are No. 1 in China; Smithfield is No. 1 in the U.S. No other combination has got as great an opportunity."
