Shuanghui International of China agreed on Wednesday to buy the American meat processor Smithfield Foods for about $4.7 billion, in one of the biggest moves by a Chinese company into the United States to date.
Under the terms of the deal, Shuanghui, which is the largest pork processor in China, will pay $34 a share for Smithfield, 31 percent above the company's closing share price on Tuesday.
The deal is meant to give Smithfield, one of the world's biggest pork producers, entryway into China. Smithfield has looked for ways to export its meat to the country, one of the biggest markets for pork, as growth in other markets has slowed.
The company eventually settled on a deal with Shuanghui, a Chinese counterpart that it has known for four years.
But it will likely draw close government scrutiny over Chinese food standards, especially amid a number of incidents like a recent scare over bird flu. Though Smithfield has argued that the deal is meant to sell American pork outside of the country and not import Chinese products, regulators are likely to ensure that the company does not lower its quality standards.
