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50/50 Merger Between Smithfield and Campofrio

by 5m Editor
26 June 2008, at 11:08am

VIRGINIA - Smithfield Foods, Inc. confirmed today that Groupe Smithfield Holdings, S.L., its 50/50 joint venture with investment funds controlled by Oaktree Capital Management LLC, is engaged in merger discussions with Campofrio Alimentacion, S.A., the largest processed meats company in Spain.

If the merger takes place as currently under consideration, Campofrio, a publicly-traded company on the Spanish Stock Exchanges, would issue shares to Smithfield and Oaktree in exchange for all of the membership interests in Groupe Smithfield.

Smithfield, which currently owns 24 percent of Campofrio, would own 36 percent of the combined company after the merger.

Smithfield said that Groupe Smithfield and Campofrio have entered into a non-binding memorandum of understanding which has established the preliminary terms and conditions for a potential merger.

The transaction is subject to the negotiation of a definitive merger agreement, as well as shareholder and regulatory approval, including the grant of a takeover bid exemption by the Spanish securities regulator (CNMV).

5m Editor