It didn't take long, and it comes as no surprise that tThe Federal Trade Commission approved the transaction between COFCO and Smithfield Foods. As a result, COFCO will purchase a 5 percent stake in Smithfield.
Smithfield announced two weeks ago its intention to sell 5 percent of the company's stock shares to China's largest agricultural trading and processing company. The driver is for Smithfield to raise cash and pay down debt.
FTC officials granted early termination of the waiting period required under the Hart-Scott-Rodino antitrust law, clearing the way for the sale.
Source: Dow Jones