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....
- Interview: Mondelez eyes sweet success in China
- The benefits of engaging staff in sustainability
- How food companies involve staff in sustainability
- What next for Bernard Matthews? - comment
- Why Danone is withdrawing Dumex from Vietnam
- Fonterra says value-added strategy paying off
- Ireland unveils national plan to tackle obesity
- B&G Foods acquires ABF's US spice business
- General Mills profit falls as sales disappoint
- Bernard Matthews pensions scheme under review
- Global Chocolate Confectionery Overview: Challenges, Opportunities and Risks
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Global Foodservice Market 2016-2020
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review
- Global Food and Drinks Closures: Performance and Opportunities