Smithfield Foods, Inc. today announced that the Committee on Foreign Investment in the United States (CFIUS) has notified the parties that it will conduct a second-phase, 45-day review of the proposed Smithfield-Shuanghui International transaction as described in Smithfield's preliminary proxy statement as filed with the Securities and Exchange Commission on June 18, 2013.
Pursuant to the Exon-Florio legislation, the inter-agency committee reviews proposed foreign acquisitions of U.S. companies for potential national security concerns while continuing to facilitate the open investment policy of the United States. The Exon-Florio legislation provides for a 30-day review following notification of a potential acquisition. At the conclusion of the 30-day review, CFIUS has the option to extend the process for a period not to exceed an additional 45 days.
Smithfield and Shuanghui International remain committed to working cooperatively with CFIUS throughout the process. The CFIUS process is confidential and Smithfield and Shuanghui International do not intend to comment further on that process while it is ongoing. Smithfield and Shuanghui International continue to expect the transaction to close in the second half of 2013.
Shuanghui International is a Hong Kong based privately held company that is the majority shareholder of China's largest meat processing company, Henan Shuanghui Investment & Development Co. (SZSE:000895). More information about Shuanghui International can be found at http://www.shuanghui-international.com.
As previously announced on May 29, 2013, Smithfield has entered into a definitive merger agreement with Shuanghui International. Under the terms of the agreement, at the effective time of the merger, Smithfield shareholders will receive $34.00 per share in cash for each share of Smithfield common stock that they own. The transaction remains subject to certain conditions, including, among others, approval by Smithfield's shareholders, the receipt of approval under certain specified foreign merger clearance laws, review by CFIUS and other customary closing conditions.