In what is potentially the largest-ever Chinese takeover of an American company, U.S. meat processor Smithfield Foods said last week that it has agreed to be sold to China’s Shuanghui International Holdings Limited in a deal worth $7.1 billion, including assumed debt.
Shuanghui, which is China’s largest meat processor, will pay $34 in cash for each share of Richmond, Virginia-based Smithfielda 31 percent premium over the target’s closing price May 28, the day before the deal was announced. The deal also includes the assumption of $2.4 billion of Smithfield debt.
