The joint offer for Campofrio has raised the original tender offer price to €6.90 ($9.45) from €6.80 ($9.32). The Offer will require the approval by Spain’s Comision Nacional del Mercado de Valores.
Shuanghui and Sigma own approximately 82 percent of Campofrio's outstanding shares. Shuanghui acquired its shares indirectly following its acquisition of Smithfield, Va.-based Smithfield Foods Inc. in September. In November, Sigma made an offer of $908 million for Campofrio. Sigma Alimentos is a subsidiary of ALFA, S.A.B. de C.V.
“We are very excited our company has joined forces with such a prestigious company as Shuanghui International,” said Armando Garza Sada, ALFA’s chairman of the board. “The combination of Campofrio’s top management led by Pedro Ballvé, strong brands and European footprint, Shuanghui International’s global reach and extensive experience in the industry, along with Sigma’s capabilities in terms of marketing and product development will result in value creation beyond what we could achieve independently.”
Madrid, Spain-based Campofrio makes cured hams, hot dogs and packaged pizzas, and has 25 plants in eight countries throughout Europe and in the US. Campofrio is regarded as Europe’s largest processed meats company, with sales of €1,916 million ($2,577 million) for the 12 months ended Sept. 30, 2013.
Shuanghui initiatlly announced in September plans to sell some of its shares of Campofrio. Under Spanish securities law, Shuanghui had less than three months to buy out the company or sell enough shares to reduce its stake in Campofrio to 30 percent.
“We are pleased to work together with the highly respected team at Sigma, with the shared vision of solidifying Campofrio’s leading position in Europe, and strengthening our ability to serve the global market with best-in-class quality, nutritious and safe food products,” said Wan Long, Shuanghui International chairman and CEO.