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The Wall Street Journal this morning reports that Shuanghui Group, described as a "Chinese meat producer," is on the verge of acquiring Smithfield Foods, the world's largest pork producer and processor.

The cost of the acquisition, if it goes through, is expected to be between $4.5 and $5 billion.

The Journal writes that the sale would occur "on the heels of agitation from a large shareholder to split up the company." It would be subject to review by the Committee on Foreign Investment in the United States (CFIUS), an inter-agency US government committee that examines the national security implications of foreign investments in and/or acquisitions of US companies.
KC's View:
Get ready for the jokes - many of them not very funny - about China's reputation as a place where tainted and inaccurately labeled meat has been sold, and where hundreds of people have been arrested for food safety violations.

I hate the idea of Smithfield being acquired by a foreign company. There may be no better option, but if so, that's a shame.