Also in this playlist...
This transcript is automatically generated
China cash one way this is the company that setting the stage.
For more international takeovers of American companies as it acquires its pork producers -- from some -- the US pork producer rather Smithfield Foods.
Well that's very much could be the beginning of the new trend -- Rich get some live in -- Smithfield Virginia governor -- show we have seen Chinese companies attempt to make takeovers of big iconic companies in the US.
You believe this one at least from what you're hearing will go -- this will be the first of many.
Well when you look at it -- the questions are really in this treasury body and they have to decide whether or not.
There is any type of harm to national security is so it's hard to imagine if pork is going to harm national -- not -- direct that question.
To a professor Deborah Huard and international business professor -- to William and Mary school of business.
Professor do you think that this could get held up do you think that this deal is in any danger of falling through -- or -- it -- to be done deal.
-- really nothing that leads me to believe it's going to be held up again as you were mentioning on CC is really looks for things that are going to be a threat to national security.
They're looking for something that could give a foreign firm access to.
To be able to tap into our infrastructure.
Cause a problem in our supply chain.
But I've I've really sort of not thinking about the hog market.
Fits into one of those categories so if this does go through becomes the largest acquisition Chinese company of an American company.
More to come.
Absolutely and that's why this deal is really so important.
It's not so much for the deal itself.
Because it actually pails in comparison size wise to many other deals that have been done recently I just think of the Anheuser-Busch deal.
Also in the food and beverage industry the went through a couple years ago ten times the size of this one.
So it's not the -- itself but this is the largest from a Chinese.
And so because I think we're looking at right now just the beginning of a wave of acquisitions of US companies by Chinese firms.
That's why it's so important that we do this went right that we look at it for the right reasons and evaluated on the deal itself.
And not be.
Overwhelmed really by the fact that this is a sort of the new buyer on the Americans -- And you expect that this could happen more from here and when you look at where we go in the future.
And you look at some of the concerns that people have had especially around here we've heard food safety concerns we've heard that.
It won't actually be an exporting deal that will be importing Chinese pork.
Are those overblown.
I think so look the motivation for this deal was that the Chinese are the largest consumers of pork in the world.
They want to improve their standards they want to gain access to the techniques and the production processes that Smithfield is known for.
And has really worked hard to develop we are world leaders in in that so.
It's really a much cleaner way for them to gain access to those technologies is to buy it -- And that's what they've done here so the -- all of information is going to be the other way the flow of -- It's going to be going the other way this is a great export opportunity.
Four maker American agriculture.
And and so I don't have.
Any concern that that the that types of processes they use that have led to trouble in China will be coming back our way.
Professor -- million William and Mary school of business thanks very much for joining us Liz big story here is -- -- -- still talking about it as they wait to see if this officially goes through.
Back to you thank you rich yes that the Chinese are coming but we.
Filter by section