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Took the biggest merger story of the week and much bigger when you look at the big picture it's the largest proposed acquisition.
Of an American company ever by a Chinese conglomerate.
-- way is -- for pork producer Smithfield Foods four point seven billion dollars.
It's still -- to be approved by US regulators -- the committee on foreign investments and its members routinely mix these mergers.
For an quote national security reasons but my next guest.
Who did recommend one such merger in the past be squashed now says.
He's fine with this deal to acquire Smithfield he is senator John Holdren a North Dakota it's a Fox Business exclusive.
A good to have you on the -- here senator of why are you OK with this particular deal.
I was good to be with you I think that Canadian -- investment will look at obviously anytime.
The Chinese are making a major acquisition ever over American -- they were gonna check it out.
It does raise some concerns I think it definitely -- investments is gonna look at it.
I think it likely will be approved.
OK so you think it'll be approved but let's talk about the it.
The focus of it -- the problem with some of the mergers in the past.
Was that they involved energy for example seen -- -- -- Unocal was summarily squashed by.
A lot of people in congress because they -- energy is a national resource.
It matters to our national security -- doesn't food senator -- batter to our national security.
-- -- of course it does and it.
Did you realize what point out our crews are more than -- -- defeat our people but did you beat but the world we're gonna continue to do that that is valid concern it's something that will be.
But value -- in that aspect of this acquisition all I think we're gonna find it that we.
Do you have food security we do have proper.
Laws and regulations in place and that's gonna continue on the energy front.
We're dependent on countries like the Middle East and we've got to break that we've got to.
-- our own energy and work with Canada I'd become energy independent as I think that's the difference between the mergers you cited the application page.
Beat them the merger attempt that you didn't like was seen -- trying to buy next and which is actually Canadian oil and gas a company.
Of the US senate approving that so you can even be concerned about our neighbors to the north making certain deals with Chinese.
You know -- real concern is that -- -- this administration is holding a project like keystone XL pipeline and has been for five years.
So instead of working let's -- -- create energy independence in this country.
We remained -- on the Middle East well China is buying up oil resource.
In Canada -- -- I would try to make the -- very clearly more that is not -- we we should be doing business this administration have to get on board with our efforts.
To make our country energy independent.
A pet at let me just ask one more question because -- -- is so important when it comes to the pork supply chain.
The Chinese are the largest consumers of pork they absolutely love it.
What happens if there's.
I'm I'm thinking down the -- a drought where there isn't enough grain to feed the port to feed the pigs and then suddenly we don't have enough for people here in this country.
Do you see any problem with anything like that and if you don't I just tried to look ahead and see what potential issues might Iraq's.
I don't think that is likely who has the ball really -- process in this industry is concentration what you're talking pork will be we have.
Number of very large companies that run the processing industry remember we want competition that would urge consumers both in terms Detroit and quite.
That's the bigger issue -- right now in the in out pork and beef processing industry.
Senator will watch this deal closely see if it goes through you are for it will talk to again.
I'm -- down the line thank you so much for speaking with us.
Very good -- we do is thank you Betty Dodd senator John -- of North Dakota we got.
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