The total value of the deal comes to about $7 billion, as Shuanghui said it will also assume Smithfield's debt. The $34-a-share offer price represents a 31% premium to Smithfield's closing share price on Tuesday.
Shuangui, which is China's largest pork producer, said the acquisition would allow it to supply more pork to China that meets food safety standards. In the midst of food safety scandals in the country, Shanghui itself was the subject of allegations that it used an illegal additive on its livestock.
China is the third-largest market for U.S. pork.The acquisition is subject to regulatory approval. It is expected to close in the second half of the year.
Sprint Nextel (S) and Japan's SoftBank have received national security clearance from regulators regarding SoftBank's proposed $20.1 billion stake in the cell phone carrier. Sprint and SoftBank said that after clearance from the Treasury Department's Committee on Foreign Investment in the United States, they've entered into a national security agreement with the U.S. government. If the two companies do combine, as part of the agreement the U.S. government will be able to veto any equipment purchases by Sprint from new vendors, according to The Wall Street Journal. The companies said they expect the Department of Justice and the Department of Homeland Security to notify the Federal Communications commission that they've completed their national security review. Upon notification, the FCC can finish its review of the deal. Last week, Senator Charles Schumer expressed concern that the deal could expose U.S. government agencies and companies to Chinese cyber attacks. He asked regulators to "use extreme caution" when reviewing the proposal. SoftBank has offered to buy a 70% stake in Sprint for $20.1 billion. Dish Network (DISH - Get Report) has launched a competing $25.5 billion offer for Sprint as a whole. Dish claims that the cyber attack issue is another reason why Sprint shareholders should consider its bid.