WASHINGTON, (AFP) -- China's Shuanghui International has agreed to buy US pork icon Smithfield Foods in a deal valuing Smithfield at $7.1 billion, the two companies said Wednesday.

Hongkong-based Shuanghui, which controls China's largest food-processing company, will pay $4.7 billion in cash and assume the debt of Smithfield, one of the largest meat processors in the United States.

Shuanghui will pay $34 for the outstanding shares of Smithfield, a premium of 31 percent over Tuesday's closing price.

"The acquisition provides Smithfield the opportunity to expand its offering of products to China through Shuanghui's distribution network. Shuanghui will gain access to high-quality, competitively-priced and safe US products, as well as Smithfield's best practices and operational expertise," said   Shuanghui chairman Wan Long in a statement.