News & Events

Simpson Thacher litigation partner Peter Thomas was recently quoted in the China Business Law Journal in an article about the recent increase in China's outbound M&A regarding the Firm's representation of Smithfield in its US$7.1 billion strategic combination with Shuanghui International, noting "as the largest Chinese inbound US deal, [it] was a watershed event which should encourage and help clear the way for future transactions." Among the challenges the companies faced was navigating the regulatory process, including receiving clearance following review by the Committee on Foreign Investment in the United States (CFIUS). With “advanced preparation, proactivity, resourcing, coordination, communication and transparency" the companies received clearance for the merger to proceed. Mr. Thomas remarked “When engaging with the U.S. government, it’s critical to have a coordinated and consistent message about the transaction. Chinese investors should be prepared to discuss why the transaction poses no national security concern to the U.S., and how a foreign investment may benefit the owners of the U.S. assets being acquired and the workers being affected.”