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An American staple at many cook outs could soon be -- by a Chinese company the proposed takeover of Smithfield Foods sparking controversy in its hometown in all around America -- -- -- It in Smithfield Virginia with more rich.
Can't imagine fourth.
July though that big in England it's -- source spot now actually I'm sorry.
Well we gave president all of these what can say is if you think yeah.
-- -- absolutely.
We got well look I am.
I am on main street USA.
It's it's actually this is main street in Smithfield Virginia and this is where Smithfield Foods is largest.
-- company in the country and there is a major deal upcoming right now take a look at the details of the deal.
Chinese company -- them over the talking about it and an awful lot here.
34 dollars a share as part of this four point seven billion dollar deal when you include the deputy Chinese companies assuming.
Are you looking at about a seven billion dollar deal it's a 31%.
Stock price premium.
And it's expected to close this year and one professor says there will be challenges.
To this union.
Trying to in terms of business environment in terms of the effectiveness over rule of law trying to -- -- is many years decades behind US in the would have when the the bad -- the rule of law free market and regulation.
I'm -- US it's perfect but it's one of the fast.
China started only couple effective go from Communist.
That -- you could -- you could look at any international indices.
Grew -- -- very -- corruption is very high so obviously their current environment.
Now overall he does say this will be a positive deal for the United States and for Smithfield because of the massive -- market in China the largest in the world.
That local producers here we'll sell an awful lot more port to such a large market but there are concerns especially in this community.
We just talk about the unknowns especially when you've got an American company now.
At least if this goes to the committee process the treasury process to be owned.
By Chinese company take a look at what the senate act committee is looking at they're holding a hearing next week on the entire process and basically they say.
They want to know what measures should be considered to ensure that -- company will maintain operations the comply with.
Stringent American food safety standards and bio security standards what measures should be considered to ensure that taxpayer supported research and development.
And any resulting intellectual property are safeguarded.
Should trends in foreign acquisitions also be monitored to ensure ongoing integrity of key components.
Of the American food supplies are bigger questions in the United States -- this is going to be the biggest deal.
A Chinese company taking over American company that we've seen before and if it does go through what does this mean for the future.
Awful lot of folks out there seem to believe that this is just the start of more Chinese -- and in the United States here in Smithfield Virginia a little bit of excitement a little bit of nervousness and they really don't know.
How this is all going to play out -- for Smithfield company they have refused to participate in our story.
Nineteen -- it's interesting thank you so we're not done.
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