Chinese meat processor Shuanghui International Holdings Ltd. has agreed to buy Smithfield Foods Inc. for approximately $4.72 billion.
As China continues to hack into United States defense systems and steal plans for modern weapons systems technology… they are now evidently buying up our major food suppliers… all the while Americans snooze…
Smithfield Foods owns brands such as Smithfield, Armour, Farmland, John Morrell, Cook’s, Eckrich, Kretschmar, Margherita, Healthy Ones, Curly’s, Garando, and Gwaltney.
They are about to become Chinese owned brands.
The Smithfield, Virginia based company will receive a 31 percent premium to their stock price while they, and their board and management team will profit handsomely from the sale to China.
“Both companies’ boards [Smithfield and Shuanghui] have unanimously approved the transaction, which still needs approval from Smithfield’s shareholders. The transaction may also be subject to review by the U.S.’s Committee on Foreign Investment.”
While apparently it is being reported that the jobs of 46,000 employees will remain intact, who’s to say what the future will hold with China at the helm holding the world’s biggest pork producer.
“…the largest Chinese takeover of a U.S. company,” according to data compiled by Bloomberg.
“…Chinese ownership of the U.S.’s largest hog farmer and pork supplier presents a food supply risk…it may have a heightened concern.”
China does have 1,354,040,000 mouths to feed… 4.3 times that of the United States. While almost certainly not all of the food will go to directly to China, the profits will…
“The deal comes amid a record flow of investment by often cash-rich Chinese companies into the U.S. While Chinese firms have taken over some well known U.S. names, including the AMC theater chain and IBM’s personal computer business, the Smithfield acquisition is the first major foray into the food industry and the most significant in terms of a daily consumer item.”
From Virginia roots to Chinese sellout…
“In 1936, the Luter family began a small packing plant in Smithfield, Virginia, that would one day grow to become Smithfield Foods, even allowing the town of Smithfield to come to be known as the Ham Capital of the World.”
“Our founders knew that future success lay in providing high quality, affordable products. Step by step, Smithfield Foods expanded and developed. During the 1980s, the company began differentiating itself by managing its supply of hogs from conception to processing. By the end of 1998, Smithfield Foods was the number one pork producer in the United States…”
…I wonder how their founders would be feeling today about the eminent sale to China?
I posted this because I thought you would be interested to know about it. I personally am disgusted with our businesses, corporations and country selling out to China (or whoever) as greed takes precedence over our nation’s borders, our national pride, our national security, our economy, and our manufacturing.
Not suggesting what you ought to do, but I for one am going to boycott this company and its food and brands.
0 (today) 11 (week) 14 (month)