Chinese stake in Smithfield
01/07/2008
Meat packer Smithfield Foods has sold a 4.95% share in its equity to Chinese food and agriculture group COFCO Limited.
Smithfield said it would use the money, an initial $63.1 million with more to follow after meeting anti-trust conditions, to reduce company debt, but increased opportunities in China, particularly for its pork division, are possible too.
Chief executive, Larry Pope, said: “I am very pleased that COFCO has agreed to make this equity investment in Smithfield. We have been working closely together and this investment represents a significant step in cementing our relationship for the long term. China is experiencing rapid growth in pork consumption and consumes more pork than the rest of the world combined. COFCO has introduced Smithfield to many opportunities in China and we look forward to continuing to work together.”
For his part, Gaoning Ning, chairman of COFCO, said: “Smithfield is the world’s largest producer and processor of pork. We look forward to building on our existing commercial relationship and exploring growth opportunities in China’s food industry together.”
Share this story:
