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-- -- thank you -- controversy.
And their own back yard as the biggest pork producer in the US could soon be known to.
By Chinese company rich as it is in Smithfield Virginia with more on this possible the old -- Okay well Cheryl -- largest acquisition by a Chinese company of an American company and we are here with -- financial advisor professional professor.
-- practice at the Darden school of business University of Virginia Michael haute thanks so much for joining us -- -- that.
What does this mean for Smithfield what does this mean for the United States.
I think that as far as Smithfield field because this is an ideal strategic partnership with a company.
That really needs what -- Smithfield has offered the vertical integration.
-- as a strategy that Smithfield has struggled for years to try to get the Wall Street to really appreciate.
Here's a company that actually not only appreciate it really needs it helped supply the growing consumption of pork in China.
Safety concerns concerns that this could go the other way and that we're gonna end up importing Chinese workers exposed to exporting America -- Possibility but probably very remote beginning if you look at the total consumption of pork in China that's huge compared to what we have here in the states what we -- exported over China.
No I think that in and it's really for as long as we can proceed it's going to be -- going from here over there.
About the management styles does that have any possible conflict in in in this structure.
Well again at any emanate transaction you're gonna have different styles whether or not they -- from different countries are just two different companies.
And so I think that that that is going to be so they're gonna have to work the way through then.
As long as both sides keep a very open mind as to the different cultural perspectives.
I think there will be OK I think certainly -- -- way -- that they are very open and attuned to the concerns that we have here in the states they.
Committed to keeping on.
Senior management all the employees know plant closures.
Even -- -- largest union has come and support for the transaction itself.
What it comes to the regulatory process treasury is overlooking this right now is Vera is there a possibility that this deals torpedoed.
There's always a possibility that -- pretty much have to make the argument that.
That they can as a national security issue.
But having said that the city -- process.
It's fairly secretive.
But that we do know that that there are senators that have called for the involvement of the USDA the FDA is part of that process we'll see how that pans out -- there's going to be.
-- Senatorial hearing from the agricultural committee on July 10 so we can already see that this has a lot of scrutiny is placed on it.
But if you look at the face on the facts.
I think it is kind of hard it is to say that this is the national orchestra she's -- she -- -- possibility that American consumers could end up paying more.
War report as a result of this.
That's always possible certainly we've seen that the the hog futures have really -- them recently but I think -- due to the overall health about the economy as a whole.
-- I think that certainly in the near term is going to be sufficient capacity that that the competitors as well Smithfield.
And the expansion could easily meet the needs that we had here in the states.
Michael -- professor at the Darden school of business University of Virginia thanks so much for joining us here from Smithfield Virginia were right down the road.
2800 employees part of the corporate headquarters of Smithfield Foods and they also have some processing here as well.
Thank you very interesting interference and you know that somebody and DC will make make it a national security -- --
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