(Photo : Shineway,  a private meat processing company and the largest meat producer in China)

The $4.7 billion acquisition of Smithfield Foods, the largest pork producer and processor in the world, by China's Shineway International is expected to be approved soon as sources close to the deal said the US is like to give its clearance for the deal.

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Shineway International, a private meat processing company and the largest meat producer in China, seeks to acquire the pork producer headquartered in Smithfield, Virginia, USA to meet growing Chinese demands for US pork. But the acquisition has not immediately been approved as US politicians and critics said the deal poses risk to America's food security.

Critics have urged the US Treasury to take a closer look at the deal for possible national security issues but a person close to the acquisition said the deal is legal and does not have plenty of national security risks attached to it.

Signs of Approval

The Financial Times reported that the Committee on Foreign Investment in the US (CFIUS) has shown signs that it is leaning towards giving clearance to the deal. If approved, the deal will become the largest ever acquisition of a US firm by a Chinese company.

Both Smithfield and Shineway declined to comment ahead of the panel's decision. Sources said the CFIUS will possibly render its decision today.

Deal Won't Hurt US Food Supply

Smithfield Foods Chief Executive Officer earlier assured the US authorities that acquisition by Shineway will not affect the food supply and agricultural products in America and will even promote job generation and higher pork exports.

While the deal is on its way to get approval from the US Treasury, another issue has propped up after Starboard Value, one of Smithfield's shareholders, announced it will vote against the acquisition. Starboard alleged that the deal is priced too low and that there are other investors who are interested in the company at a purchase price higher than what Shineway is offering.