Shuanghui International Holdings Limited and Smithfield Foods have received clearance on their proposed transaction from the Committee on Foreign Investment in the United States. In addition, Smithfield and Shuanghui have received governmental merger clearance in Ukraine.
The deal, where Chinese firm Shuanghui would take ownership of Smithfield in a $7.1 billion transaction, remains subject to Smithfield shareholder approval and other customary closing conditions. Smithfield's shareholders are scheduled to vote on the transaction at a special shareholders meeting on September 24. If the vote is approved, Shuanghui International and Smithfield expect the transaction to close shortly thereafter.
"We are pleased that this transaction has been cleared by the Committee on Foreign Investment in the United States, and we thank the committee for its careful attention to this review," said C. Larry Pope, chief executive officer and president of Smithfield Foods.
If the transaction is completed, Smithfield will continue to operate under its existing brand names as a wholly owned subsidiary of Shuanghui International.