Meat&Poultry - August 2013 - (Page 13)

New issues arise around Smithfield/Shuanghui deal Members of the House Energy and Commerce Com- wrote: “The committee’s investigation indicates that the mittee are raising concerns about the potential impact US heparin supply is stressed, and could well be in short- of the proposed acquisition of Smithfield Foods Inc. by age. China’s heparin market is experiencing its own pres- Shuanghui International Holdings Ltd. on the domestic sures, and Smithfield Foods under Shuanghui control may supply of heparin. be pressured to export its crude heparin product to China Smithfield announced in May it had entered into a de- instead of supplying US companies. The impact of this finitive merger agreement with Shuanghui International. pending acquisition on the availability of US heparin is According to terms of the agreement, at the effective time critical. Heparin is still widely used for heart surgery and of the merger, Smithfield shareholders will receive $34.00 dialysis patients.” per share in cash for each share of Smithfield common stock they own. In addition to the Committee on For- The committee set a deadline of Aug. 7 for responses to the questions raised in the letter. eign Investment in the United States (CFIUS) review, Other issues with the Smithfield/Shuanghui deal in- the transaction is subject to certain conditions, including clude the CFIUS has extended its review period for the approval by Smithfield’s shareholders, the receipt of ap- proposed acquisition. proval under certain specified foreign merger clearance laws and other customary closing conditions. CFIUS, an interagency committee, reviews proposed foreign acquisitions of US companies for potential national The committee’s concerns come during an ongoing in- security concerns. Federal regulations provide for a 30- vestigation into heparin contamination. The investigation day review following notification of the proposed transac- dates back to 2008. Heparin is a blood thinner. Smithfield tion. CFIUS can extend the review period for at least an Foods is a major supplier of crude heparin, which is made additional 45 days, and has elected to do so to examine from pig intestines. this proposed transaction. In a letter to Larry Pope, CEO of Smithfield, the com- “Smithfield and Shuanghui International remain com- mittee members said the Food and Drug Administration mitted to working cooperatively with CFIUS throughout and other authorities have linked contamination of the the process,” Smithfield said in a statement. “The CFI- US heparin supply to “intentional adulteration during US process is confidential and Smithfield and Shuang- the manufacture of heparin in China...” The committee hui International do not intend to comment further on that process while it is ongoing. Smithfield and Shuanghui International continue to expect the transaction to close in the second half of 2013.” I n addit ion, a Sm it h f ield sh a re holder f iled a lawsuit in June alleging the company denied shareholders crucial infor mat ion about the buyout deal. The lawsuit also claims the purchase price undervalues the company. ■ • August 2013 • Meat&Poultry • 13

Table of Contents for the Digital Edition of Meat&Poultry - August 2013

Meat&Poultry - August 2013
Table of Contents
Commentary - Beyond foodies
Business Notes - Boyle to step down from AMI leadership
Cobb-Vantress strengthens position in China
Pilgrim’s Pride earnings surge in Q2
Arson suspected in Valley Meat Co. fire
Northern Beef Packers lays off workers
New issues arise around Smithfield/Shuanghui deal
Washington - Horse slaughter storm rages on
Legends of Deli
Deli Report
Gluten-free Growth
Deli packaging dynamics
Competitive edge
Meat Processing Operations & Engineering - Wild about turkey!
Cargill turkey operations gets new president
Tricks of the trade
Sanitation Tips - Equipment selection
Listeria alert
Small Business Matters - On a mission
Show Preview - Packing 'em in
From the Corral - Relieving painful practices
Product Showcase
Names in the News
Classified Advertising
The Insider

Meat&Poultry - August 2013