Smithfield Foods, Inc. shareholders overwhelmingly voted in favor of a $7.1-billion deal (including debt) for China's Shuanghui International Holdings Ltd. to purchase the company. More than 96% of the votes were in favor the the transaction, accounting for roughly 76% of the company's outstanding shares of common stock.
In accordance with the terms of the deal, shareholders will receive $34.00 per share in cash for each share of Smithfield common stock they own, making the deal worth a total of $4.72 billion in cash.
Smithfield's press release on the matter explains, "Upon closing of the transaction, Smithfield's common stock will cease to be publicly traded and the company will be a wholly-owned subsidiary of Shuanghui International Holdings Limited, operating as Smithfield Foods.""
Earlier this month, the U.S. Committee on Foreign Investment (CFIUS), which examines foreign investment for potential threats to national security, gave the plan the green light.
Pending closing conditions, the deal is expected to be completed by Sept. 26, 2013.
This news is contributing to strength in the lean hog market today as traders expect this to boost pork export opportunities to China going forward.