Smithfield Foods ends negotiations for Campofrio
June 3, 2011
by Bryan Salvage
SMITHFIELD, Va. – Citing adverse economic conditions in Europe and recent declines in its stock price, among other things, Smithfield Foods Inc. announced an end to negotiations regarding its proposed joint delisting takeover bid, together with Pedro Ballve, to acquire the remaining shares of Campofrio Food Group SA.
"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,” said C. Larry Pope, president and CEO of Smithfield. “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 percent stake in Campofrio and supporting the company's continued growth and development as Europe's leading packaged meats company,” he added. “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 to merge the companies at the present time.”