Live

Watch CBSN Live

U.S. security panel OKs proposed Smithfield sale

SMITHFIELD, Va. A U.S. committee that reviews cross-border mergers to see if they threaten national security has cleared a Chinse company's purchase of U.S. pork producer Smithfield Foods Inc. (SFD).

Smithfield said Friday that the U.S. Committee on Foreign Investment in the United States gave the green light to its proposed sale to Shuanghui International Holdings Ltd.

"Despite concerns raised by earlier reports that some of Smithfield's facilities were proximate to sensitive U.S. Department of Defense facilities and that the U.S. food supply could be impacted in a way harmful to consumers and the military, CFIUS determined that there were no unresolved national security concerns with this proposed deal," said Larry Ward, an attorney with law firm Dorsey & Whitney, in a statement.

}

Smithfield also says the proposed buyout received clearance from the Ukraine government.

Hong Kong-based Shuanghui agreed to in May to buy Smithfield in a deal valued at $7.1 billion, including debt.

Smithfield shareholders are scheduled to vote on the transaction on Sept. 24.

Shares of Smithfield rose about 3 percent in after-market trading.

View CBS News In