Chinese meat processor Shuanghui International Holdings is taking over Smithfield, the largest pork producer in the US after the Smithfield Foods China deal. Although the tie is likely to strengthen the commercial bonds between he two nations, certain US authorities are unhappy with the deal, particularly a large US company being acquired by the Chinese firm. China continues to be one of the largest pork consumers in the world. On the other hand, the US company is known for its high-quality food exports. Presently, it supplies packaged food to a number of reputed firms, including Cook’s, Armour, Farmland and Smithfield. Once the deal is signed, China will get a good supply of food from the US, catering to its high demand for processed pork.
Although the deal is not a good news for the US, given that one of its leading companies is getting acquired by the Chinese, this will not result in the closure of its outlets. The managerial team of Smithfield will remain the same. At present, the company employs over 46,000 employees. Smithfield CEO Larry Pope, in a conference, stated that the transaction mechanism and operation will remain the same as before. He added that the Smithfield Foods China deal would bring them more opportunities and new frontiers in business. He also said that the trade would not result in the importing of pork from China into the US. He termed the move as ‘exporting America’ to the other nations of the world.
The CEO also added that the people had a misconception that all American goods are made in China. Once the deal is completed, the US company would benefit from the exposure to new markets. This takeover is likely to result in the mergers of other US companies by the Chinese in the coming years. The operational production units of Smithfield will remain as it was before after the deal.