Shuanghui International, whose full name is Shuanghui International Holdings Limited, is located in Hong Kong and is mainly engaged in investment, international trade and diversified business. It is the controlling shareholder of Shuanghui Development (000895), China's largest meat processing enterprise and China's largest listed meat company, as well as the controlling shareholder of Shuanghui Group, the first largest shareholder of Shuanghui Development.In 2012, Shuanghui Development, which is controlled by Shuanghui International, herded 310,000 hogs, slaughtered 11,420,000 hogs, and produced a total of 2,700,000 tons of meat, realizing a sales revenue of 39.3 billion yuan and a Profit totaled RMB 3.8 billion.

Shuanghui International's major shareholders are Heroic Zone Investments Limited, CDH, Runfeng Investment, Guo Group, Yunchang, Goldman Sachs Strategic Investments, Focus Chevalier Investment Company Limited, Blue Air Holdings Limited (New Horizon), Temasek. Founded in 1936, Smithfield Foods is a global food company with operations in 12 countries worldwide.　　The company's previously announced fiscal 2012 results showed net income of $361.3 million, or $2.21 per diluted share, and sales of $13.1 billion, up 7%. In fiscal 2011, Smithfield Foods reported net income of $521 million, or $3.12 per diluted share.　　Smithfield is the world's No. 1 hog producer,*** raising 850,000 sows and producing nearly 16 million commercial hogs annually.

Smithfield is the world's No. 1 pork producer, with production and sales volumes well ahead of its U.S. competitors, with a daily slaughter capacity of up to 110,000 head, and is the No. 1 pork exporter in the United States. Smithfield is also the No. 1 supplier of pork products in the U.S.: No. 1 in the U.S. retail channel, No. 1 in the foodservice industry channel, and has more than a dozen leading U.S. brands, with several products ranked No. 1 in the market.

Smithfield has an industry-leading food safety system, world-class biosecurity systems and scientific records, quality control throughout the supply chain, and superior product traceability with product source information back to the hog farm. Smithfield is ranked No. 2 in the food industry by Fortune magazine in its annual ranking of the world's most respected companies. Smithfield currently operates two fully lean pork production facilities, which cater to exports to the European Union, Russia, China and other markets. Starting in June 2013, Smithfield has achieved 50% of its farms being completely free of ractopamine-added feed. Shuanghui International

Mr. Wan Long, Chairman of Shuanghui International, said: "We are very pleased to have reached this agreement, which is a historic moment for Shuanghui International and Smithfield. This is a combination of the two largest pork companies in the world's largest economies, China and the United States, concentrating state-of-the-art technology, resources, techniques and talent, complementing each other's strengths, and will result in the world's largest pork company, providing high-quality, safe meat proteins to the world. After the merger, Shuanghui International promises to keep Smithfield's operations unchanged, management unchanged, brand unchanged and headquarters unchanged, and promises not to lay off employees or close plants. It will also continue to work with U.S. producers, suppliers, and farms. Consumers across the United States will continue to enjoy Smithfield's high-quality, safe pork products. After the completion of the transaction, Shuanghui International will adhere to its long-term development strategy, focus on the development of high-quality, safe and efficient meat industry, and build a world-class meat enterprise carrier through the layout of resources around the world. At the same time, we will continue Smithfield's established strategy to maintain its excellent brand and advanced management concepts, and work with it to fulfill its commitment to social responsibility and practice of environmental protection."

Smithfield

Smithfield CEO Larry Pope had this to say. "This transaction is significant for all of Smithfield's shareholders, along with American farmers and American agriculture. Smithfield is the world's leading and most trusted vertically integrated hog farmer and processor, and we are pleased that Shuanghui International recognizes our sound management structure, superior food safety operations, and 46,000 hard-working employees. It will be business as usual for Smithfield in the future, and things will only get better. We don't see any changes to Smithfield's business operations in the U.S. and the rest of the world. We will be part of a business that shares our confidence in global opportunities and our commitment to upholding the highest standards of product safety and quality. We will ****enjoy each other's expertise and leadership positions in two of the world's most important pork-consuming markets, China and the U.S. As part of Shuanghui, we look forward to accelerating our global expansion strategy."