From The Am Law Daily

In what is potentially the largest-ever Chinese takeover of an American company, U.S. meat processor Smithfield Foods said Wednesday that it has agreed to be sold to China’s Shuanghui International Holdings Limited in a deal worth $7.1 billion, including assumed debt.

Shuanghui, which is China’s largest meat processor, will pay $34 in cash for each share of Richmond, Virginia-based Smithfield—a 31 percent premium over the target’s Tuesday closing price. The deal also includes the assumption of $2.4 billion of Smithfield debt.

Smithfield is the world’s largest pork processor and also owns a variety of packaged meat brands, including Eckrich, Farmland, and Armour. The deal is expected to close in the second half of this year, pending approval of Smithfield shareholders and regulators including the Committee on Foreign Investment in the United States.

The New York Times notes that the deal could face increased scrutiny due to China’s recent history of food-related scandals, including the discovery of thousands of dead pigs floating in a major river near Shanghai earlier this year. Meanwhile, the companies have promised that the point of the deal is to send Smithfield’s products to the Chinese market, which Reuters says has seen demand for U.S. meat skyrocket over the past decade. "Shuanghui will gain access to high-quality, competitively-priced and safe U.S. products, as well as Smithfield’s best practices and operational expertise," Shuanghui chairman Wan Long said in a statement.

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