Shuanghui inherited 37 percent of the company following its acquisition of Smithfield Foods Inc. Under Spanish securities law, Shuanghui has less than three months to take over the company or sell enough shares to reduce its stake in Campofrio to 30 percent.
The Smithfield, Va.-based pork processor announced that the companies completed the acquisition. As of the close of the Sept. 26 trading day, Smithfield shares will no longer be listed on the New York Stock Exchange. Under the terms of the agreement, each Smithfield shareholder will receive $34 per share in cash. The company will be a wholly-owned subsidiary of Shuanghui International operating as Smithfield Foods.
"Our partnership ensures the stability of our business for all our stakeholders, particularly our employees and the communities we serve, while simultaneously unlocking exciting opportunities for growth in the large and rapidly growing Chinese pork market. This is a new era for Smithfield, but one that will continue to be defined by the strictest adherence to the highest standards of food safety and quality, an unwavering commitment to giving back to our communities and acting as a responsible global corporate citizen," said C. Larry Pope, Smithfield CEO and president.
More than 96 percent of Smithfield Foods shareholders voted to approve the acquisition during a special meeting of shareholders held Sept. 24 in Richmond, Va. The votes cast in favor of the deal represented approximately 76 percent of Smithfield's total outstanding shares of common stock as of the record date of the meeting.
"Today marks an exciting new chapter for both of our proud organizations as we formally begin a partnership that will benefit our customers, employees, producers and partners," said Wan Long, Shuanghui International chairman. "Together we look forward to utilizing our individual strengths, including Shuanghui's extensive distribution network in China and Smithfield's leading production and safety protocols, to provide safe, high-quality products to consumers worldwide."