US security panel OKs proposed Smithfield sale

US national security committee, Ukraine OK proposed Smithfield Foods sale to Chinese company

Associated Press

SMITHFIELD, Va. (AP) -- Smithfield Foods Inc. says that a U.S. committee that reviews mergers between American companies and those overseas has given clearance to the pork producer's proposed sale to a Chinese company.

Smithfield said Friday that the U.S. Committee on Foreign Investment in the United States gave clearance to its proposed sale to Shuanghui International Holdings Ltd.

The committee reviews overseas transactions for national-security implications.

Smithfield also says the proposed buyout received clearance from the Ukraine government.

Hong Kong-based Shuanghui agreed to in May to buy Smithfield in a deal valued at $7.1 billion, including debt.

Smithfield shareholders are scheduled to vote on the transaction on Sept. 24.

Shares of Smithfield rose about 3 percent in after-market trading.

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