NEW YORK (AP) -- Chinese meat processor Shuanghui International Holdings Ltd. has agreed to take Smithfield Foods private for approximately $4.72 billion.
Shareholders of Smithfield, the world's biggest pork producer, will receive $34 per share. This is a 31 percent premium to the Smithfield, Va., company's closing stock price of $25.97 on Tuesday.
The companies put the deal's total value at about $7.1 billion, including debt.
Smithfield Foods Inc. — whose brands include Armour, Farmland and its namesake — has about 138.8 million outstanding shares, according to FactSet.
Both companies' boards have unanimously approved the transaction, which still needs approval from Smithfield's shareholders. The deal is expected to close in the second half of the year.
Smithfield's stock surged $7.23, or 27.8 percent, to $33.20 before the market open.