Smithfield Foods said Wednesday its proposed acquisition by a Chinese pork company has moved to an additional phase of review by a panel of U.S. regulators.
The Committee on Foreign Investment in the United States opted for an extended review of the transaction lasting up to 45 days following its customary 30-day period, according to a Smithfield news release. Echoing past statements, the company said its confident its deal with Shuanghui International, which was announced in late May, will be successfully completed later this year.
"(T)he inter-agency committee reviews proposed foreign acquisitions of U.S. companies for potential national security concerns while continuing to facilitate the open investment policy of the United States," Smithfield said of CFIUS," Smithfield said.
Following a standard 30-day review, the company continued, "CFIUS has the option to extend the process for a period not to exceed an additional 45 days."
The company said it has no plans to comment on the CFIUS reviews beyond the occasional technical explanations of how they works, citing that the process is confidential.
The panel traditionally examines national security implications of foreign takeovers of U.S. companies ? whether a foreign company, for example, is attempting to buy a company with facilities close to sensitive military sites or with employees who routinely access such locations.
The proposed Smithfield deal, however, has prompted federal lawmakers including Rep. J. Randy Forbes, R-Chesapeake, to call for the Department of Agriculture and the Food and Drug Administration to be part of the review panel due to concerns about the country's food supply.
Smithfield is the largest hog farmer and pork processer in the world and controls large chunks of the domestic market share in both sectors.
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