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There were questions Wednesday if U.S. regulators will approve the takeover of Smithfield Foods Inc., the company that sells all-American hams, hot dogs and bacon, by China's Shuanghui International.

It's being called the biggest such takeover of an American company by a Chinese firm. Already, Wall Street traders were bullish on the plan, sending the company's stock price up. Industry experts said it will increase exports to the burgeoning Chinese market.

"This does have the potential to increase U.S. pork exports to China, which would benefit all U.S. pork producers," said Dave Warner, director of communications for the National Pork Producers Council.

Impact On Industry

Dan Norcini, an independent commodities trader, said market reaction suggests the deal will be approved. But he had questions about the long-term impact on the pork industry. Shuanghui could ratchet up production to feed the growing demand for meat in China, Norcini said.

"If the Chinese come to own Smithfield, will Smithfield be at the dictates of its Chinese owner? Or will they let market forces determine whether they are going to expand their herd size or not?" he said. "That's the big question because it could impact the rest of the industry."

Larry Pope, Smithfield chief executive, said the deal won't change how the company does business. Its headquarters will remain in Smithfield, Va., he said, and there will be no changes to the 46,000-person workforce.

"It will be business as usual — only better — at Smithfield," Pope said in a statement. "We do not anticipate any changes in how we do business operationally in the United States and throughout the world."

Criticism Of Deal

The deal must still be approved by the Committee on Foreign Investment in the United States, a move that could be hindered by Shuanghui's involvement in a 2011 scandal that involved feeding a dangerous additive to pigs set for slaughter.

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