Posted on 05/29/2013 9:28:58 AM PDT by DeaconBenjamin
China's Shuanghui International has made a $4.7bn bid to takeover Smithfield Foods, the world's largest pork producer, in what would be the biggest takeover of a US company by a Chinese firm to date – if it passes regulatory hurdles.
The deal is likely to run into heavy opposition in Washington, where a series of Chinese takeovers have been blocked by politicians and regulators. Shuanghui, also known as Shineway, is China's largest pork producer and is part owned by an investment firm run by Goldman Sachs.
A takeover would give Smithfield entry into China, one of the biggest and fastest growing markets for pork. "This is a great transaction for all Smithfield stakeholders, as well as for American farmers and US agriculture," said Larry Pope, president and chief executive officer of Smithfield. "It will be business as usual – only better."
Shuanghui chairman Wan Long called the deal an "historic opportunity". Wan is a high-profile business leader in China, where he is known as the country's "No 1 butcher" because his company slaughters more than 15m pigs a year.
In March, local media reported that Wan told the National People's Congress that he planned to make Shuanghui a major multinational company and one of the world's largest meat processors.
"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," he said.
The acquisition is subject to regulatory approval by the committee on foreign investments in the United States. Several large takeovers by Chinese companies have been thwarted in the recent past.
(Excerpt) Read more at guardian.co.uk ...
What we have is about as close as it gets from our side. They have most favored nation status. And tariffs are low.
No, not really. China pays the same tariffs as, say, Germany. That’s all MFN means.
Of course at first glance we all know this is impossible, that free trade ≠ closed market.
Looking deeper I'd have thought you'd wanted the Chinese to buy more US stuff --I know I do-- and this article is about the Chinese buying US stuff. Even so you sound like you object for some reason. Please say what the heck it is that you do want and just how you intend to bring it about.
” Why do we have free trade with China when they are a closed market and they have to own the firms before they have access to the Chinese market? “
How bout that....
This article is about China buying another plant to shut down and move the China to employ chinese while more Americans join the unemployment line.
This article is about China buying another plant to shut down and move the China to employ chinese while more Americans join the unemployment line.
Smithfield Foods Inc. has a very nasty habit of hiring illegal immigrants. They’ve had many ICE raids. This company isn’t the greatest to begin with. I’ll just continue to make my meat and egg purchases from my local farmer.
Smithfield Virginia
Only the most liberal statist Free Trade Communist would cheer for this
Smithfield is a southern tradition. To be owned by the Communist Chinese amounts to treason. Dare some Free Trader to go down and cheerlead about how ChiComs owning Smithfield is good.....there will be some rope burns around the neck
Smithfield, VA ....near Hampton Roads....where Smithfield is HQ
Ni hao, Chairman Mao
We have Most Favored Nation status for Communist China....which pretty much is Free Trade with Communist China. World Trade Organization decisions reflect this
And greetings to you. “Pretty much is” is a term that morons use, often.
We have very free trade with China, this is how we run up such huge trade deficits with them. We are wide open to Chinese imports same as we are wide open to illegal immigration
You forgot the budget deficit. “Free trade” with China is why we have a budget deficit. LOL
A Chinese conglomerate that close to Norfolk does give me pause.
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