Smithfield Sold; No Word on Sponsorship

According to the Associated Press, Shuanghui International Holdings Ltd. has agreed to buy Smithfield Foods Inc. for approximately $4.72 billion, the largest acquisition of a U.S. company by a Chinese company. 

Hong Kong-based Shuanghui owns a variety of global businesses that include food, logistics and flavoring products and is the majority shareholder in China's largest meat processing enterprise. Smithfield, the world's biggest pork producer, owns brands such as Armour, Farmland and its namesake. Both companies' boards 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, which evaluates the potential national security effects of transactions. The process typically includes a 30-day initial review, followed by a 45-day investigation before making a recommendation to the president. Smithfield's stock will no longer be publicly traded once the deal closes.

Under the agreement, there will be no closures at Smithfield's facilities and locations, including its Smithfield, Va., headquarters in the historic southeastern Virginia town of about 8,100 where it was founded in 1936, the companies said. 

Smithfield's existing management team will remain in place and Shuanghui also will honor the collective bargaining agreements with Smithfield workers. The company has about 46,000 employees.

No mention was made about the company's sponsorship of Richard Petty's No. 43 Ford for driver Aric Almirola.