COFCO Agreed by FTC to Buy Smithfield Foods 4.95% Stake

BEIJING, Jul 18, 2008 (SinoCast via COMTEX) -- SFD | Quote | Chart | News | PowerRating -- China National Cereals, Oils & Foodstuffs Import & Export Corporation (COFCO), the largest oils and food importer and exporter in China, has gained approval from the US Federal Trade Commission (FTC) to acquire a 4.95% stake in the US-based Smithfield Foods Inc., the largest pork producer and processor in the world, announced the acquirer on July 16, 2008.

On July 30, the US-based company disclosed that it would sell 7 million shares to the Chinese leading food manufacturer, which was likely to be completed in August. This is the latest deal that a foreign company buys into a US meat-related company, which has trapped into struggle.

COFCO Chairman Gao Ning said that the company hoped to deepen its cooperation with the foreign giant, which has annual sales of up to USD 11 billion, in attempt to boost the development of the Chinese food processing industry. Due to bad weather and rising cost, pork prices in China have leapt about 38% since 2007.

From www.ny3721.com/url/2805/, Page 1, Thursday, July 17, 2008 info@SinoCast.Com

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