Soaring feed costs have sparked a wave of cross-border dealmaking in the meat industry, which has
riled some farmers and gotten the attention of federal lawmakers. The latest deals involve the world's largest pork producer, Smithfield Foods. As The Deal's Donna Block
reported on Tuesday, to reduce its debt, Smithfield is selling nearly 5% of its stock to Cofco Ltd., China's largest national agricultural-trading and processing company. It has also
agreed to sell its Groupe Smithfield Holdings to Spain's Campofrio Alimentacion SA, a meat processor in which Smithfield already owns 24%. This deal will expand Smithfield's European footprint by increasing its stake in Campofrio to 36%.
Smithfield is also a player in some controversial dealmaking in the beef sector, where Brazilian cattle giant JBS SA has been rounding up U.S. targets. Last year JBS acquired Swift, which was the third-largest beef producer in the U.S., and in March it announced plans to acquire Smithfield's Beef Group and National Beef Packing Co.
The Justice Department has yet to rule on the latter two deals. No doubt, U.S. cattle farmers - many of whom are still trying to recover from a mad cow disease scare that sent exports tumbling - will be watching closely. - Suzanne Stevens
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