Fairfax residents may be interested to hear that a local food company, Smithfield Foods, Inc. merged with a meat-processing company in China. As is often the case with mergers and acquisitions , the merge will bring some serious changes to Smithfield Foods. Fortunately, this particular merger is expected to bring positive changes to Smithfield Foods.
The merger values Smithfield Foods at $7.1 billion and under the merger agreement, the company will become an independent subsidiary of Shuanghui International Holdings Limited. According to chief executive officer and president of Smithfield Foods, no facilities are expected to close and employees can expect wage and benefit packages. The chief executive officer stressed that employees could rest assured that their jobs and or responsibilities would not be affected by the merger.
Furthermore, the chief executive officer went on to say that the two companies have been thinking about merging since 2009. He also says that pricing has been somewhat of an issue for Smithfield and that the Asian Market presents excellent opportunities for the company. While the merger has been approved by the boards of directors of both companies, it still needs to be approved by government agencies but should be complete by the second half of 2013. Both company presidents are positive about the end result of the merger.
Often, business and or real estate transactions can take time and possibly numerous legal proceedings before being completed. Regardless of the size of the company, companies going through mergers and or acquisitions may find the process daunting and possibly a bit confusing. Companies in such situations may want to consider enlisting the help of an experienced business transaction attorney to assist with the process.
Source: Suffolk News Herald, "Smithfield to merge with Chinese company", Tracy Agnew, June 29, 2013