ANOTHER CHINESE PURCHASE OF AN AMERICAN COMPANY...AND THIS TIME IT'S FOR PORK!China's expensive love affair with pork
On Wednesday, Virginia-based Smithfield Foods
(SFD, Fortune 500), the world's largest processor of pork, announced that it was being bought by Chinese meat producer Shuanghui International for nearly $5 billion. It is the biggest announced acquisition of a U.S. company by a Chinese buyer.
The deal makes sense: China's pork consumption has been steadily increasing.
China is already the world's largest producer and consumer of pork. In China, per-capita pork consumption last year was 86 pounds, up from 70 pounds in 2002, said Mark Schultz, chief analyst with Minneapolis-based Northstar Commodity Investment.