CHINA/US: COFCO sells stake in Smithfield Foods
COFCO invested in Smithfield in 2008
Chinese state-owned agribusiness and food processor COFCO has sold its 5% stake in US meat giant Smithfield Foods.
Smithfield said on Friday (16 November) it had paid US$148m for COFCO's 4.95% stake.
COFCO bought the shares in Smithfield in 2008. At the time COFCO said it wanted to "explore growth opportunities in China's food industry" with the US pork processor.
Last year, COFCO chairman Gaoning Nang resigned from his seat on the Smithfield board, although Larry Pope, the US firm's CEO, said the company wanted to "foster [its] relationship" with the Chinese group.
On Friday, after Smithfield announced the acquisition of COFCO's stake, Pope said: "As the leading consumer of pork, China is an important export market for Smithfield and we will continue to maintain a strong commercial relationship with COFCO going forward. We foresee many future business opportunities for Smithfield and China and our outlook for US pork exports remains positive," Pope said.
Smithfield Foods Announces Repurchase of COFCO Shares
SMITHFIELD, Va., Nov. 16, 2012 (GLOBE NEWSWIRE) -- Smithfield Foods, Inc. (NYSE:SFD) today announced that it has purchased 7.0 million shares of its common stock from COFCO Corporation, China's largest national agricultural trading and processing company. The purchase was made pursuant to Smithfield's previously announced share repurchase program.
"As the leading consumer of pork, China is an important export market for Smithfield and we will continue to maintain a strong commercial relationship withCOFCO going forward. We foresee many future business opportunities for Smithfield and China and our outlook for U.S. pork exports remains positive," said C. Larry Pope, president and chief executive officer.
The aggregate value of the purchase was approximately $148 million, or $21.12 per share, and represents the entirety of COFCO's previously held position that was established in July 2008.
Original source: Smithfield Foods
Smithfield Foods CEO Larry Pope has labelled demands from major shareholder Continental Grain that the US meat giant should split in three "inherently flawed"....
US meat processor Smithfield Foods is to close a site in Maryland....
Smithfield Foods has said it will "review" criticism from major shareholder Continental Grain into the US meat processor's strategy and the investor's call to split the company in three....
In a week of results from major retailers, Carrefour cheered the market with improvement in France, upmarket UK grocer Waitrose highlighted its strong year and Belgium's Delhaize insisted its business...
A major investor in Smithfield Foods has called on the US meat giant's board to consider splitting the company in three....
Smithfield Foods said its move to become a company focusing more on "value-added" packaged meats is working after the US company reported "strong" third-quarter results....
- Rabobank's early view on Brexit impact on food
- How local model protects Nestle - interview
- Brexit sparks uncertainty for UK food - comment
- Quorn Foods confident in prospects - interview
- Kellogg uses Kashi to finally join party - comment
- Brexit – Live reaction from food industry
- Nestle names new CEO
- Brexit - UK food trade body issues warning
- Brexit – UK farmers warn of food price spike
- Brexit – US confirms commitment to TTIP with EU
- Top Trends in Snacks, Confectionery, and Desserts; Exploring consumer and innovation trends in key categories
- Frozen Bakery Products Market by Type, Distribution Channel, & by Region - Global Trends & Forecast to 2020
- Singapore Food and Drink Report Q3 2016
- Fast Food in India
- Country Analysis Report: Saudi Arabia, In-depth PESTLE Insights