Virginia-based pork producer Smithfield Foods (SFD.N) entered an agreement with China’s Shuanghui International for a $4.7 billion, all-cash buyout.
Smithfield has been under pressure from it’s largest shareholder, Continental Grains, to break into multiple companies and increase its dividend. The meat producer opted to sell out to foreign interests.
The deal will likely lead to an increased flow of American-grown pork to the Asian nation. A change that could impact pork and pork product prices at home.
Smithfield, the largest producer of pork in the world, operates processing facilities in North Carolina and several countries throughout the world.
The deal will require Federal Trade Commission approval.