Americans might have plenty of worries going forward for at least one pork company. One of the biggest pork companies, Smithfield Foods, has announced their shareholders have approved the vote to allow Shuanghui Holdings to buy up their company. For foreign exchange trading there will be a big trade of currency to come. The acquisition is $4.7 billion. The money will be changing hands and Smithfield’s debts will be acquired too. Smithfield is also going to be taken off the stock market as a public company, which means those trading the stock need to get out for profit or risk losing all their money.
Further Pork Discussion for Foreign Exchange Trading
The vote to allow the company buy out has many implications for the USA and USA companies even in terms of foreign exchange trading. The USD is in need of gaining some value back. The economy needs stimulus to strengthen in order to get the Fed taper going. However, it is just another major acquisition by China in recent years that takes a little more of the USA with it. AMC Theatres, a huge chain in the USA, was bought out almost two years ago by a Chinese company. Now even the pork industry is getting a buyout.
It is not just the agriculture hold they are gaining on America’s soil, but the issues Shuanghui International has had in the past. They are actually responsible for Chinese food troubles. The company was found to have unsafe food on the market and at least some products have been responsible for infant deaths. Now this company is taking over a stake in U.S. agriculture and American farming. The CEO believes it is a partnership that will help home business since it provides another avenue for sales; however, there is also worry that it could be the beginning of major changes. There is every possibility that more companies will try the same thing making American families with farms lose a little bit more each time.
The U.S. Food Safety was not keen about the Chinese company getting its hand in mostly due to the trouble the company has had for food safety. Unfortunately, the food safety agency was unable to stop the sale form happening so far. For foreign exchange trading it is a good thing if products are made and sold overseas since it means more trade and thus help to domestic currency; however, things are rarely if ever that clear cut.
Foreign Exchange Trading is a Global Market More and More
On the one side China gaining more companies and debt that is the USA’s helps out all industries and the economic situation. It can even help strengthen the USD value in foreign exchange trading. This buy out of Smithfield shows that the world is becoming more globalised than in the past, but there are still a lot of worries. Smithfield is behind some of the main brands of hot dogs and pork products, which will probably become more expensive with the massive amount sent overseas.