Shareholders just approved the buyout of Smithfield Foods by Shuanghui International of China. More than 96% of shareholders voted in favor. Smithfield executives will make millions on the sale, and the company will become private, which means it doesn't have to report details of its operations to the Security and Exchange Commission. Shuanghui is partially owned by Chinese businessmen and the U.S. investment bank Goldman Sachs. Food & Water Watch released a statement about this buyout. Executive Director Wenonah Hauter said, "the recent USDA decision to allow processed chicken imports from China, coupled with news of the Smithfield-Shaunghui merger approval by shareholders and a federal review commission, shows that U.S. regulators are paving the way for meat imported from China - … [Read more...]
Smithfield/Shuanghui Buyout Passes Federal Review
The acquisition of Smithfield Foods by Shaunghui Holdings International was approved by the federal Committee on Foreign Investment in the United States last week according to the company. That committee reviews international business deals to determine any effect on national security. This acquisition will be the largest takeover of a U.S. company by a Chinese firm. The company will not be publicly traded after the deal is done. But one of Smithfield's shareholders, Starboard Value LP, said it plans to vote against the deal at a meeting scheduled for September 24, 2013. Food safety is not the concern of Starboard; that entity wants to make sure that shareholders get the best deal possible. Starboard says it has other written offers for a higher price. In July, a coalition of … [Read more...]
Coalition Urges Rejection of Smithfield Takeover by Chinese Company
Food and Water Watch has joined with other consumer and farm organizations to ask the Committee on Foreign Investment in the United States to reject the proposed Shuanghui Holdings acquisition of Smithfield Foods. The proposed purchase was announced in May 2013. Signers of the letter include Center for Rural Affairs, Land Stewardship Project, Missouri Farmers Union, National Farmers Union, and R-CALF USA. The letter states the risks of food security, consumer food prices, food safety, and farm economies in the United States, along with national security. Tim Gibbons of the Missouri Rural Crisis Center said in a statement, "The White House should reject the sale of America's food supply. This proposed acquisition is a prime example of how expanded corporate consolidation in agriculture … [Read more...]
Include Food Safety Experts in Smithfield Review, Senators Say
Food safety experts should be part of the review process of Shuanghui International's proposed acquisition of Smithfield Foods, one of the largest producers of pork products in the U.S., says a bipartisan group of senators. The proposed purchase will undergo a national security review by the Committee on Foreign Investment in the United States (CFIUS) and Treasury Secretary Jacob Lew will decide which agencies will be included. In a letter to Secretary Lew, members of the U.S. Senate Committee on Agriculture, Nutrition and Forestry asked that the U.S. Department of Agriculture (USDA) and the Food and Drug Administration (FDA) be added to the review to ensure that the safety of the American food supply is not jeopardized. "We believe that our food supply is critical infrastructure that … [Read more...]
