US Committee to Take Second Look at Smithfield-Shuanghui Deal25 July 2013
US - The Committee on Foreign Investment in the United States (CFIUS) is to conduct a second-phase, 45-day review of the proposed Smithfield-Shuanghui International takeover.
The move is in line with the Exon-Florio legislation where the inter-agency committee reviews proposed foreign acquisitions of US companies for potential national security concerns while continuing to facilitate the open investment policy of the United States.
The Exon-Florio legislation provides for a 30-day review following notification of a potential acquisition. At the conclusion of the 30-day review, CFIUS has the option to extend the process for a period not to exceed an additional 45 days.
Smithfield and Shuanghui International say they remain committed to working cooperatively with CFIUS throughout the process. T
he CFIUS process is confidential and Smithfield and Shuanghui International said that they do not intend to comment further on that process while it is ongoing. Smithfield and Shuanghui International continue to expect the transaction to close in the second half of 2013.
Shuanghui International is a Hong Kong based privately held company that is the majority shareholder of China's largest meat processing company, Henan Shuanghui Investment & Development Co. More information about Shuanghui International can be found by clicking here.
Smithfield entered into a definitive merger agreement with Shuanghui International on 29 May.
Under the terms of the agreement, Smithfield shareholders will receive $34 per share in cash for each share of Smithfield common stock that they own.
The deal remains subject to certain conditions, including, among others, approval by Smithfield's shareholders, the receipt of approval under certain specified foreign merger clearance laws, review by CFIUS and other customary closing conditions.
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