The Deal: No CFIUS Strings Attached to Smithfield Deal
The companies' announcement did not address mitigation conditions, an omission that does not necessarily indicate that mitigation was not required. When China's Cnooc (CEO) announced CFIUS approval of its acquisition of Canadian gas producer Nexen (NXY) in March, it did not mention that the CFIUS barred it from exercising operational control of energy facilities Nexen owned in the U.S. portion of the Gulf of Mexico.
CFIUS experts picked up through the grapevine over recent days that mitigation was indeed absent from the Smithfield approval.
The transaction remains subject to Smithfield shareholder approval and other customary closing conditions. Smithfield's shareholders are scheduled to vote on the transaction at a special shareholders meeting on Sept. 24. Shuanghui International and Smithfield expect the transaction to close shortly thereafter.
-- Written by Bill McConnell In Washington
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