Smithfield's sale raises Senate worries

Smithfield Foods (SFD.NYSE) CEO Larry Pope appeared before a US Senate body on Wednesday in a review of Chinese firm Shuanghui International’s US$4.7-billion buyout of America’s largest pork producer, The Wall Street Journal reported. Senators voiced concerns over potential negative impacts on the US food-supply chain, with Pope saying that both companies have “every incentive” to guarantee product safety. The points of contention included the Chinese government’s role in Shuanghui’s management, given that it is a state-owned company. Senator Mike Johanns noted there is currently no legal mechanism for the government to block the deal, which is being reviewed by the Committee on Foreign Investment in the US.