Shuanghui to Acquire Smithfield

By CnAgri2013-06-06 10:11:16 Print Shuanghui International Co., Ltd. has recently declared that it would purchase all the shares of Smithfield Foods, the world’s largest pork supplier, with $7.1 billion. Shuanghui promises to let the latter operate as usual after the acquisition.
 
BOABC considers that the merger may help Shuanghui to upgrade its technology and food safety control and facilitate Smithfield’s pork exports to China. But the merger is unable to help Shuanghui to increase its meat exports, simply because of the high cost of production in China and the low quality of Chinese food products.
 
The merger may help Shuanghui to expand its influence in the domestic market, creating a pressure on Yurun Group, which is Shuanghui’s largest competitor.



From “China Livestock and Feed Market Weekly Report”