After review by the committee on foreign investment in the United States extension, shuanghui international biggest supplier of pigs and pork products to the United States of smithfield deal has finally passed the examination and approval. In fact, because the matter is behind the predators, such as Goldman sachs capital eventually approved not out in anticipation, but with strong capital strength of the "enemy" challenge, the future of the domestic pig industry is doomed to be changed, the personage inside course of study or even concern, the domestic pig industry or will follow the soybean industry's and devastated.
Or as investors cashed out exit channel
Shineway international aspect, the statement said the deal was still need to get smithfield shareholder approval and meet the relevant delivery routine conditions. Trading is expected to completed after the general meeting of shareholders in the short term. After the successful completion of the deal, smithfield will as a wholly owned subsidiary of shuanghui international, to continue to operate the existing brands.
In fact, the acquisition of shuanghui international equity structure complex. Shuanghui development reported in 2012, shuanghui international equity structure, established by China shuanghui management and staff of xing tai group holding 100% of the male domain company with a 30.23% stake in the largest single shareholder, at the same time because of shuanghui international staff incentive plan of chang company has a 6% stake. Second, CDH four fund holdings amounted to 33.7%, and there are a number of other investors, for example, Malaysia's richest man, Robert kuok, the group has a 7.4% stake, international famous Investment bank Goldman sachs holds a 5.18% stake, Singapore's sovereign wealth fund temasek holdings Dunearn Investment PTE Limited 2.76% stake, private equity fund new horizon through its two agencies combined 4.15% stake.
CDH, Goldman sachs has been rising in domestic pig market cycle positive intervention, the two big pork products supplier in China yurun and shuanghui, there are represented by the two capital big alligator of foreign capital, at the same time, the two capital in recent years are gradually withdraw from. It is understood that in 2010, investors have been trying to make acquisition of parent company shuanghui development assets in order to realize the exit, but the final reason to give up. Recent reports that the buying a full ownership of smithfield, shuanghui international or will return to pack it to Hong Kong, which provide favorable investment Banks such as Goldman sachs, CDH exit channel.
Help to improve the overall level of the domestic meat industry
Acquisition of shuanghui and China meat industry what effect is there? Shineway international has responded that this is the world's two largest economies, the combination of two of the largest meat industry focus on the most advanced technology, resources, technology and talent, will form the world's biggest pork. "We will be the world's advanced production and management, management and food safety system in China, improve the overall level of Chinese meat industry."
But industry still worried that the domestic pig industry or will be too big impact. "The bottom line of the deal from the United States pork exports to China increased, rather than Chinese exports to the United States." Smithfield CEO larry Pope had previously in the United States senate is made clear when the acquisition of inquiry, accept purchase mainly consider China's growing consumer market, and even after the acquisition, the company also won't pork products imported from China.
Larry Pope, smithfield in huge growth over the past few years is mainly due to the increase in exports, especially for the increase of China's exports. He said that the Chinese market for 50% of the world's pork consumption, and is still growing.
And regulations, our country still ban imports of pig and meat, but allow imports of pork. According to the ministry of commerce, China in 2012 from overseas imports of pork and by-products of more than 130, ten thousand tons of imports from the United States more than 50, ten thousand tons of smithfield is one of the main exporters.
Domestic pig industry concerns about loss of pricing power "game, this is a capital purpose is likely to be indirect open channels of U.S. pork into China, squeeze the Chinese aquaculture, eventually master pricing power." Smithfield said in more heavy domestic pig worries about the future. The personage inside course of study says, with strong capital strength and government subsidies under the American giant rashly, in the future in pig or step will follow in the footsteps of soybean industry and rout.
"After thousands of small pig hard times." More insiders said that China's pig industry or by eating: prices peaks with the domestic pig industry share a feast. Prices trough aggressive short, extend the trough, until the large-scale pig farms capital chain rupture. At this time with strong capital strength the management can be acquired at the minimum price of scale pig farms, control the supply of absolute advantage, basic control pricing power.
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