Groupe Smithfield & Campofrio discuss merger
Smithfield Foods has confirmed that Groupe Smithfield,
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. Yield synergies
Smithfield, which currently owns 24 percent of Campofrio,
would own 36 percent of the combined company after the merger. When merged the
companies would yield synergies in production, distribution, marketing and
sourcing, helping both firms manage rising fuel and feed
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.
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).
â€¢ Smithfield Foods
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