China's Shuanghui buys US pork icon Smithfield

China's Shuanghui International has agreed to buy US pork icon Smithfield Foods in a deal valuing Smithfield at USD 7.1 billion, the two companies said today.
Hongkong-based Shuanghui, which controls China's largest food-processing company, will pay USD 4.7 billion in cash and assume the debt of Smithfield, one of the largest meat processors in the United States.
Shuanghui will pay USD 34 for the outstanding shares of Smithfield, a premium of 31 per cent over yesterday's closing price.
"The acquisition provides Smithfield the opportunity to expand its offering of products to China through Shuanghui's distribution network. Shuanghui will gain access to high-quality, competitively-priced and safe US products, as well as Smithfield's best practices and operational expertise," said Shuanghui chairman Wan Long in a statement.