Smithfield Foods is looking to increase its shareholding in Campofrio Food Group and take a majority stake in the Spanish processed meats maker.
The US meat giant said yesterday (6 April) that it was in talks with Campofrio chairman Pedro Ballve over a possible joint bid worth EUR9.5 a share.
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The two sides are discussing whether to make an offer for the remaining 50% stake in Campofrio, which would give Smithfield an 87.6% stake in the company.
“The acquisition of Campofrio would further Smithfield’s long term strategy of becoming a leading global consumer packaged meats company,” said president and CEO Larry Pope. “In addition, we are assessing potential synergies relating to sales, operations and raw materials with both our US and international businesses.”
Smithfield said it would need around EUR500m (US$714.5m) to buy the shares and said the money would come from a combination of “existing liquidity and capital markets financings”.
In 2008, Smithfield merged its European operations into Campofrio to create Europe’s largest packaged meats firm. The deal gave Smithfield a 37% stake in Campofrio, having previously owned 24% of the business. Smithfield first bought shares in Campofrio in 2004.
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