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Smithfield Calls off Take-Over of Campofrio

by 5m Editor
6 June 2011, at 9:30am

US & SPAIN - Smithfield Foods has announced the termination of negotiations to acquire a controlling interest in Campofrio Food Group.

Smithfield Foods, Inc. has announced that it has terminated negotiations with respect to its proposed joint delisting take-over bid, together with Pedro Ballve, to acquire the remaining shares of Campofrio Food Group, S.A.

C. Larry Pope, president and chief executive officer of Smithfield Foods, commented: "While the acquisition of Campofrio would have furthered Smithfield's long term strategy of becoming a leading global consumer packaged meats company, we feel it is in the best interest of our shareholders to terminate negotiations at this time. Our decision has been influenced by numerous factors including continued adverse economic conditions in Europe that show few signs of abating, and the recent decline in our stock price, which has made the proposed transaction more difficult to finance on a basis that is accretive to our shareholders.

"As Campofrio's largest shareholder, we remain committed to holding our 37 per cent stake in Campofrio and supporting the company's continued growth and development as Europe's leading packaged meats company. In particular, we will continue to look for ways to capture and enhance synergies between Campofrio and Smithfield for the companies' mutual benefit, despite the inability merge the companies at the present time," he concluded.