Shuanghui's acquisition deal win-win for China, U.S. (2)

"We do not anticipate any changes in how we do business operationally in the United States and throughout the world," said Larry Pope, president and chief executive officer of the firm.

According to Feng, the deal will lead to increased exports to China of excessive pork produced in the United States and thus ease U.S.trade deficits, a major source of trade frictions between the world's two largest economies.

Shuanghui said it is "especially attracted to Smithfield for its strong management team, leading brands and vertically integrated model."

"For the first time, Chinese food producers can get a closer look at how their experienced American peers monitor and control food quality throughout the entire supply chain," Feng noted.

"We can learn a lot from the industry leader: intensive hog-rearing, efficient organization, strict safety control and effective environment protection measures," said Wan Long, chairman of Shuanghui International.

Shuanghui's reputation was battered in 2011 for its use of hogs fed with clenbuterol, a chemical banned in China that makes pork leaner but can cause health problems if consumed by humans.

Food industry use of drugs aiding lean meat growth has raised health concerns in many countries, as slack oversight increases the risk of abuse by food producers seeking sheer gains.

It is reported that Smithfield has weaned its hogs off animal feed that contains ractopamine, a chemical approved by the U.S. Food and Drug Administration to boost lean meat growth in commercially raised hogs.

The move has bolstered Smithfield's pork exports to countries that ban such practices, including China.

"Smithfield commands a very strict food safety management system, bringing the entire supply chain under its vertical integration model," Wan said. "Once the deal is complete, we will strengthen our exchange in this area and introduce best practice to enhance safety and quality in China's meat processing industry."

"We are likely to see more cooperation in the future between Chinese food companies and their American counterparts," Feng predicted.