China buys US's largest Hog & Pork Producer, Smithfield Foods Inc. - Bye Bye Bacon!

Smithfield Foods Inc. (SFD), the world’s largest hog and pork producer, said U.S. regulators will allow the company to be bought by China’s Shuanghui International Holdings Ltd. in what would be the biggest Chinese purchase of a U.S. firm.

“This transaction will create a leading global animal protein enterprise,” Zhijun Yang, Chief Executive Officer of Shuanghui International, said in a joint statement from both companies released yesterday.

The Committee on Foreign Investment in the U.S., or CFIUS, approved the transaction and it will be voted on by Smithfield shareholders at the company’s annual meeting Sept. 24. The government of Ukraine also approved the deal, according to the statement.

Shuanghui, based in Hong Kong, said May 29 it would buy Smithfield for $4.72 billion in a deal that has drawn scrutiny from senior members of Congress in both U.S. political parties, including Senate Finance Committee Chairman Max Baucus, a Democrat from Montana, and Orrin Hatch, a Republican from Utah, who had asked for a “thorough review” of the plan.

[link to www.bloomberg.com]