My issue with the buyout is not one of value or share price. It is about a fairly obvious "resource war" that has been emerging from the Chinese, who have been slowly entering American commodity markets and buying up U.S. natural resources.
This trend is most evident in oil and gas where the two largest Chinese energy companies have bought billions in assets in oil and gas. Cnooc (CEO) has entered into two major joint venture deals with natural gas company Chesapeake (CHK) in the Niobrara and Eagle Ford shale formations, paying more than $3 billion for the assets, and Chinese mega-cap Sinopec (SNP) recently followed suit, buying half of Chesapeake's Mississippi Lime assets for $1.02B in cash.
These deals have come on the heels of the monster buy of Canadian oil giant Nexen by Cnooc for $15.1B, which closed in February.There has been limited pushback on the increasing ownership of American and Canadian energy assets since Cnooc ended its pursuit of California energy company UNOCAL in 2005. But since that proposed deal was met with protest and quashed, several others have closed without a hitch. The United States still represents a cornucopia of natural resources that no other nation can match in grains, energy and metals. Is there a line that should be drawn in the sale of these assets to foreign nations? And in the case of Smithfield, is home-grown pork and chicken another national resource that no outside entity should own? I discuss this idea with Jim in the video above. At the time of publication the author had no position in any of the stocks mentioned. Follow @dan_dicker This article was written by an independent contributor, separate from TheStreet's regular news coverage.