WASHINGTON, Sept. 26 (Xinhua) -- Shuanghui International and Smithfield Foods on Thursday announced the completion of their merger, officially concluding the largest Chinese takeover of a U.S. company.
Senior executives from both sides pledged that the combined company will emerge as a leading global pork enterprise with greater access to the large and growing Chinese market and world-leading food safety and quality control standards.
"Together we look forward to utilizing our individual strengths, including Shuanghui's extensive distribution network in China and Smithfield's leading production and safety protocols, to provide safe, high-quality products to consumers worldwide," said Shuanghui International Chairman Wan Long.
For his part, Smithfield CEO Larry Pope said, "Our partnership ensures the stability of our business for all our stakeholders, particularly our employees and the communities we serve, while simultaneously unlocking exciting opportunities for growth in the large and rapidly growing Chinese pork market."
With the completion of the strategic combination, Smithfield shareholders received 34 dollars per share in cash for each share of Smithfield common stock they own.
The company will continue to operate under its existing brand names as a wholly-owned subsidiary of Shuanghui International. As of the close of Thursday's trading, shares of Smithfield's common stock will no longer be listed on the New York Stock Exchange.
In late May, Shuanghui, China's largest meat producer, reached a deal with Smithfield, the world's largest pork producer and processor, worth about 7.1 billion U.S. dollars in total, including debt.
The deal was cleared by the Committee on Foreign Investment in the United States earlier this month and approved by shareholders two days ago.