Smithfield Foods Inc. (SFD) on Wednesday said the Committee on
Foreign Investment in the U.S. will conduct a second-phase, 45-day
review of the proposed acquisition of Smithfield by Chinese meat
producer Shuanghui Group.
In May, Smithfield said it had agreed to be acquired by
Shuanghui for about $4.7 billion, a deal that would mark the
biggest Chinese takeover of an American company and underscores the
Asian nation's renewed determination to scoop up overseas
assets.
The rules governing proposed acquisitions of U.S. companies by
foreign firms call for a 30-day review following notification of a
potential acquisition. At the conclusion of this, the CFIUS has the
option to extend the process for a period of up to 45 days
longer.
Smithfield and Shuanghui International continue to expect the
transaction to close in the second half of this year.
Shares of Smithfield closed Tuesday at $33.30 and were inactive
premarket. The stock has risen 83% in the past 12 months.
Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com
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