Smithfield CEO Pope Defends Proposed Takeover

Smithfield Foods Inc. (SFD) Chief Executive Larry Pope said the proposed $4.7 billion takeover of the pork producer by a Chinese company will help expand its industry and reiterated the company will continue to uphold high domestic food-safety standards.

In a testimony before the U.S. Senate Committee on Agriculture, Nutrition and Forestry, Mr. Pope said the proposed deal is expected to drive growth and expansion for the company's growers as well as the U.S. pork industry.

The planned sale of the world's largest pork producer by revenue to China's Shuanghui International Holdings Ltd. has sparked concerns from some lawmakers about the impact on the safety of the U.S. food supply.

Mr. Pope said the company, under its deal with Shuanghui, will maintain its more than 2,000 contracts with family farmers in the U.S. The merger also provides an opportunity for U.S. hog farmers to boost exports to China, where demand is growing, he said.

Mr. Pope said the combined company plans to ensure the continued safety of its products and brands, noting that nothing about how Smithfield's products are made, inspected or distributed will change. Smithfield's facilities will continue to maintain their quality and experience the same level of USDA inspection, regardless of the ownership of the company, he said.

A group of U.S. senators last month asked that the Department of Agriculture and the Food and Drug Administration be allowed to participate in Washington's review of the Smithfield sale, the largest ever acquisition by value of a U.S. company by a Chinese-owned entity.

Smithfield in late May agreed to be acquired by Shuanghui at $34 a share. Its shares slipped nine cents to $32.77 in recent trading.

Write to Nathalie Tadena at [e-mail]

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