This page has been archived and commenting is disabled.
The Chinese Are Coming, And They Want America's Pork
Moments ago, news broke that in a stunning M&A move, an American pork icon - Smithfield Foods, may be acquired as soon as today by China's Shuanghui, also known as Shineway, which is China's largest pork producer. The Chinese are coming, and they want America's pork. It unclear how soon after the deal gets clearance by the Committee on Foreign Investment (if it does at all) will the US be subject to that well-honored China excess pig "clearance" strategy: floating 'em down the river.
Chinese meat producer Shuanghui Group is close to a deal to acquire Smithfield Foods Inc. for between $4.5 billion and $5 billion, according to people familiar with the matter.
The sale of the Smithfield, Va.-based pork and meat producer could be announced as soon as Wednesday morning, and comes on the heels of agitation from a large shareholder to split up the company.
The bid by Shuanghui, also known as Shineway, represents a roughly 30% premium over Tuesday's close of $25.97, the people said. But a deal could be subject to review by the Committee on Foreign Investment in the United States, they said.
Smithfield's board of directors is concerned about the deal passing muster with CFIUS review, said a person familiar with the matter. The deal is structured with a reverse breakup fee in the event that the deal falls apart due to regulatory issues, the person said.
Founded in 1936, Smithfield has a market capitalization of $3.6 billion as of Tuesday's close.
Shuanghui Group, based in Henan province in central China, is the holding company for Henan Shuanghui Investment & Development Co., 000895.SZ +1.47% which is publicly listed in the Chinese city of Shenzhen. Shuanghui is China's largest pork producer, according to the company, and it sells products under the English name Shineway.
A spokeswoman for Smithfield couldn't immediately be reached.
Confused why China wants pork? Simple: the meat is the primary food in the country, the biggest source of marginal food inflation, and is produced more in China than in the entire rest of the world.
»
- 12786 reads
- Printer-friendly version
- Send to friend
- advertisements -
All the pork is on Capitol Hill...
Some of it was in Syria yesterday...not sure what the hell he is up too.
The explanation has yet to be provided....pretty sure it has something to do with running guns.
ya.. can't make this tuff up... 9/11 al -cia-duh...*cough*
10 years later.... we welcome our al cia-duh overlords!!!
=(
...And you guys thought that the Chinese won't get paid for their status as America's de-facto lender. The boss always collects.
I guess they got tired of eating rice.
I wonder if the new Chinese owners will be required to abide by environmental laws. Lord knows, the Republicans hate to burden business with rules and regulations. So when the Chinese want to dump pig waste on Americans (and they wrote the requisite $5,000 checks), I assume it will be no problem.
Bonus! http://uncrate.com/stuff/23k-gold-chocolate-bacon/
Pigs get fat,
sheeps get fleeced.
Porkers get porked, I'm luvin' it.
How much do you figure they'll pay for a 350 pound gal from Texas?
China man is, how you say, not so well endowment. Maybe is like small gal from Texas more better.
"small gal from Texas"
Boris is never go to Texas before.
Boris never ate a cow "whip" (eh penis) like most chinamen, for endowment ?
"Manufacturing" some of that 500m slaughters a year is good for the economy, no?
Boris is vomit in mouth. Must go now.
All your porks are belong to us.
I stopped reading at Republicans. Open your eyes and see that the Elephants and the Donkeys actually comprise one party: the Pig party. And you're not a member.
Pay up or your river is fill with floating pig cadaver!
LOL, stupid Chinese, they don't even know that Monsanto owns the entire pig species:
http://www.naturalnews.com/011581_Monsanto_patent_law.html
long sons of anarchy
short rule of law
let real justice prevail...
Stealing American weapons designs ain't enough for them? Pork? Let them eat cake!
Weapon of Mass Consumption
The US based pork will be sold in China for a big premium over domestic sources of pork because it will be considered "safe". The same thing is currently happening with western produced powdered baby formula. The Chinese don´t trust their own food industries, and will pay out the nose for quality. Of course, those with cash will get the good stuff, while the poor will continue getting copious amounts of river pig.
America Bacon is awesomeness, but Canadia Bacon is number one. Boris is put on yeast leavened crust with cheese, tomato paste, and pineapple and family is very happy for dinner.
The US based pork will be sold in China for a big premium over domestic sources of pork because it will be considered "safe". The same thing is currently happening with western produced powdered baby formula. The Chinese don´t trust their own food industries, and will pay out the nose for quality. Of course, those with cash will get the good stuff, while the poor will continue getting copious amounts of river pig.
Don't forget plastic rice.
Lock up your cats America.
american will go to war over bacon. this is the last straw.
Next 'Commander in Chief' will be called 'The Bacon-a-tor'...
i gotta say the chinese are smart. they are trading us cheap plastic knick knacks for food companies.
A pound of bacon here is already over $7 - up from $4 and change a year ago......
the translation of worthless fiat debt bombs into tangibles... continues...
Weren't the Chinese just floating dead pork down their rivers? Now they want to float ours???
Are chickens safe from them?!
Remember when everyone was scared of Japan. And Japan came in and pissed away all their money on pointless shit that made no sense, ended up being money pits and other investments made to try and create some level of "respect"? Remember when Japan rolled over on the Plaza Accord and as if by magic their economy plunged into a depression that it's been in ever since to this very day?
Neither of those things will be happening with China.
I do remember. +1
I do also remember how all the talk about Chinese money flowing into the American political process created a small, short scandal - and was never mentioned again, particularly because "reform" brought our American Cousins the twin beauties of "corporations are persons" and the Super-PACs, which give every dollar the same electoral chances as the other dollar
careful, though, China could have a very bumpy road ahead, and your political system is not... foolproof and crisisproof
Who knows? For 'americans', the group is all and they are a lot of 'american' wannabees in China.
Just like the others, they will blow money on acceptance.
Muslims are doing this at the moment, blowing money on sports teams and infrastructure.
Speaking of building a future alternative to oil...
.
Should be prosperous for your JKC* franchise. Those free river pigs you fished in Shanghai are pure of profits.
*Just Killed Cat, popularous Chinese citizenism fastfood chain much the dangdang.
No Pork for you !!!
Melanin bar b q'd ribs anyone?
This deal probably should go through, but my guess is that it gets blocked.
We don't want pigs spying on us!
Pork for gold. Sounds good to me.
No, you'll be getting some of that worthless paper back that you've been printing. Enjoy :)
Haha,
Just what I was thinking.
"You think we stupid taking paper? Now we eat your lunch."
Then no pork for you!!! Possession is now the law after all. Must be some serious chinese trolls out this morning. It is what it is. If I have the pork, I decide what I want in exchange motherfucker.
If China acquires lets buy from another company.....right
They won't need your demand. All that pork will go back to China. They might produce it here, but it will be going back to China.
Saves them the collateral costs of feed and water needed to raise those pigs - more water from irreplaceable Noprth American aquifers is being exported to China with those pigs while the US is left with all the ponds of pig manure
"...It unclear how soon after the deal gets clearance by the Committee on Foreign Investment (if it does at all) will the US be subject to that well-honored China excess pig "clearance" strategy: floating 'em down the river...."
ROR!!!
Chineese political donations paying off in pork.
So I presume the market will go *Oink-Oink*
Hide your kids, hide your wives, hide your dogs, the pigs are coming!
Hide your obese relatives with pink skin
Syria has positioned Tishreen missiles aimed at Tel Aviv. Tishreen has a 200 km range and half ton warhead. IAF will take these out first.
NATO chief to meet Obama in White House on Friday (AP)
This will end totally well...
The plan is :
"Pork meat for the Chinese, Soylent Green for the American people"!
Pigs are as inteliigent as dogs. Modern factory farming, which confines these animals in conditions so horriffic there are now laws against takiing photgraphs of confined animal operations, is one of the most cruel and inhumane monstrosities ever created by humans.
Confined animal operations increase disease transmiossion. As a result, anitbiotics and other harmful drugs are used indoiscrimainately. Fed GMO feedstocks in held in cramped, filthy, and inhumane conditions, the animals themselves suffer psychologically, emotionally, physically. The meat products produced from these tortured creatures actively promote disease in human consumers.
We will defeat the Chinese- by making them twice the children of hell as ourselves.
Babe could talk.
Hope he's learning Cantonese.
Hu Flung Dung?
Yes, pork production in China is more intimate. There the farmers and pigs room together before the pigs get eaten.
I don't understand why they don't just use their best hackers to get the pork.
All inventory and shipping information for fresh meats are obviously stored in computer files, which means easy access and manipulation, and the booty potentially purloined by porcine perpetrators.
If we see a few stray balloons from Pink Floyd's "Animals" tour floating by, it'll be a sign that they've struck. (This very much matches the characteristic Chinese sense of humor.)
Actually, most Chinese are (fairly accurate) of the opinion that US pork sucks. It honestly does taste horrible. Acquisition by China is pretty much a golden ticket that, if played correctly, will result in better breeds, better pork, and a whole lotta profit (for China), as well as being able to effectively offshore some of the production to a China-owned company in the US. Enjoy! You're gonna get your lunch eaten, on the plus side, the scraps will taste better.
Can't speak for Smithfields but I always though Virginia hams were the best of the best. Anywho...if you're willing to spend that much money for "no good pork" then why shouldn't someone else be able too? Sounds to me like pork production...and quality...is indeed about to surge. But for whom?
Though not exactly the best indicator, I've eaten breakfast @ hotels in some parts of China. Their pork definitely sucks.
Either it is the species? of pork that is raised... maybe how they are processed... not sure.
Pigs are just what you feed em, feed them crap and thats how the meat tastes......
I think what you and LaoMei are forgetting is that the populations of both countries expect different products. So what may be delicious to one country may "suck" for another.
It taste horrible becasue it is confinement raised. When we first started doing forest fed pigs, we bought a few confinement raised pigs to get started. We couldn't believe how bad they smelled and how bad their shit smelled. After a few weeks in the woods, the bad smell went away and by the time we had them butchered and packaged, the meat was delicious...
What were they eating in the woods, if you don't mind me asking? Did you have to augment with any other type feed?
They eat everything. Small trees, roots, acorns, an occasional chicken. They completely clear out the woods and have to be moved. Yes, they have a movable feeder. We ferment molasses, corn, wheat and feed that to them
Mr. Wu in Deadwood had the secret of growing tasty pork.
"Swingen, you send me cocksuckars."
Is this kosher?
Sure glad we do not have a dead fetus market, they would jump all over that also.
bonesless pork spare ribs over pork fried rice, yummy
Is there any doubt that there will eventually be a third world war between China and the US?
This is easy, we have a feral pig problem in this country. Pay the Chinese to clean it up. Win-win.
Hillary is for sale.
Since 1947
http://www.rotten.com/library/bio/usa/hillary-clinton/
Word is that on the playground was Hillary would dare to pull down her pants for someone's lunch money.
That meats too old and it smells like Lewinsky...
Eewwwww.
The thought of eating that makes me want to bleach my brain.
Because, for some reason many of the pigs raised in China end up dead and floating in the river.
I've always suspected the Chinese Pig Mafia, but, I can't prove it.
A book for you: The Windup Girl.
The economics of it don't make much sense, but it's certainly got an interesting theme (poor Finland).
p.s. I chose that site over AMZN etc for this epic review. All of humanities' problems in one easy to read flame bait one star review. Classic (and he even updated it after three years, it's obviously central to his life).
how much u payin me?
The Chinese have all kinds of barriers for our food in China.....now they want it...I doubt that this passes the politicians muster..but cash talks...and the Chinese have a lot of our cash....I do not trust them.....especially with my food...
Swineway
all your pork rinds are belong to us
Man... China eats more pork? Gotta step up the pork eating game... even with all the bacon hype? http://pinterest.com/mrsbittle/bacon-recipes/
Bacon weaves... etc...
sigh...
Is Murphy Brown subsidiary of Smithfield Foods included in the sale?
Excellent. Let the Chinese buy this enormous American factory torture "farming" sh*thole that produces what our ancestors would have spat back out.
I'll continue buying Humanely Raised and Handled
( http://certifiedhumane.org/ and http://www.certifiedhumane.org/index.php?page=producers-products )
pork from a sustainable family farm where the pork tastes like pork (not "that other white meat", whatever that means).
Only problem is.. the chinese consumer reaps the benefits of all the subsidies poured into the whole hog industry supply chain by the US taxpayer. Agri-business, GMO corn and other feeds.
Mid West becomes Chinas pig Guantanamo...US environment and tax payer foot the bill...Obama the Muslim (Ironically) gets the blame.
Very good points which I did not consider. (Your moniker does not describe you well at all.) Yet another excellent reason to promptly and precipitously phase out federal Ag subsidies.
Although, I'm pretty sure O-hole's not a Muslim, nor a Christian, but most likely a deist who figures the watchmaker's not looking, so anything goes. He may look like a Muslim from what he and Bush have done to the Middle East, but that's just destabilization for the ongoing global power grab IMO.
The idea that porks grown in the US could be shipped to China through acquisition of a US company is very bold.
The reverse might happen.
The idea of Chinese citizenism blobbing up operating in a reversely manner is accessorily fantasical.
So I can expect prices at the ubiquitous China Bomb Buffets to be rising soon in the U.S.? For shame. The last time I ate at one of those joints I ended up shitting by the side of the road anyway.
The largest meat and poultry protein producers in USA are:
1. Tyson Foods(US Multinational Corporation)
2. JBS -Brazilian owned bought out Pilgrams Pride(poultry) owns pork and beef operations.
3. Cargill(US Multinational)
4. Smithfield (US multinational soon to be Chinese owned!)
5. Sysco(US multinational)
Know where your food comes from! Buy local! There are farmers that raise beef poultry and pork near you!!!
www.localharvest.com
Great link, Thanks !!
Sysco is food distributor not a producer.
Banjo music....now squeal like a pig
I'll give you my scrapple and bacon when you pry it from my cold, dead hands.
Scrapple?!?
That's OK, you can have it. :)
They just made a move into Belarus:
China is building an entire city in the forests near the Belarusian capital Minsk to create a manufacturing springboard between the European Union and Russia.
Belarusian President Aleksandr Lukashenko allotted an area 40 percent larger than Manhattan around Minsk’s international airport for the $5 billion development, which will include enough housing to accommodate 155,000 people, according to Chinese and Belarusian officials.
Lukashenko, who’s led his former Soviet state of 9.5 million for two decades, is turning to China to help revive a $60 billion economy that’s needed $6.5 billion of bailouts from the International Monetary Fund and Russia since 2009. The hub will put Chinese exporters within 170 miles of EU members Poland and Lithuania and give them tax-free entry into Russia and Kazakhstan, which share a customs union. It will also let them draw from a workforce that’s 99.6 percent literate and makes $560 a month on average, half the Polish wage.[Bloomberg]
An economic free zone between the EU and Russia, funded by China? Biscuit meet cake, and grab your popcorn [Map for the geographically challenged].
As for the piggies? Well, China is moving into the Australian beef market (only buying product atm) and are fully in favour of industrialized GMO feed principles, so I don't see the market caring who owns it.
If it was bought out by an EU corp (who traditionally like a bit of science with their GMOs, however, here is Tesco announcing it can no longer fulfill promises) who wanted to switch to non-GMO feed, you'd see the deal squashed quicker than a street food vendor when Health & Safety come calling.
Global cultivation Total GM varieties
Soya bean 95 million 75.4 million (79%)
Maize 157 million 51 million (33%)
Cotton 34 million 24.7 million (73%)
Oilseed rape 30 million 8.2 million (27%)
Total for the above four crops 316 million 159.3 million (50%)
[FSA UK]
p.s. I really hate this faux hyper-linking that grotty rags like Bloomberg & The Guardian use just to self-recursively link to their own content. It's a bastardization of "Scientific Journalism" and pointless. Not modern, just the illusion of being able to use the tech. Pitiful. Try linking to PDFs & Journals boys n girls.
Buying American assets with US$'s keeps your wealth away from Bernanke's grasping hands.
long pig
I don't purchase anything that originates from China for my pets. Remember the dog food poisioning?
Remember melamine in milk to increase protein content?
How about the toothpaste that was sold in the U.S. (recalled) but contained poision? Yep, rather than using glycerin as a thickening agent, they used diethylene glycol.
This is the same country that has companies that use toxic materials in toys.
I understand that 60% of product recalls are connected to manufacturers in China.
Even if the company uses U.S. grown pork, I will not purchase this product - They have been implicated in scandals involving tainted food (the pork scandal").
When it comes to food safety standards...I'm too concerned even w/U.S. based food companies and what suppliers they are using (yikes) to even consider a Chinese-based entity heavily funded by Goldman Sucks that has been caught using prohibited lean meat protein and drugs.
http://english.cntv.cn/program/china24/20110317/103653.shtml
http://www.china.org.cn/learning_english/2011-03/17/content_22165024.htm
http://books.google.com/books?id=7-XSc2znVFoC&pg=PA53&lpg=PA53&dq=shineway+food+safety&source=bl&ots=_at-mxtZIJ&sig=a-VUAR0Xl6TIpqeauubpsEMgI0s&hl=en&sa=X&ei=XhqmUdmRE4_e8wTV2oCoCA&ved=0CDMQ6AEwADgK#v=onepage&q=shineway%20food%20safety&f=false
China can only buy what's for sale, everything else is sour grapes.