Shuanghui International will sell part of the stake in Campofrio it has attained through the acquisition of Smithfield Foods to avoid having to make a mandatory offer for the Spanish meats firm.
The purchase of Smithfield has given Shuanghui a 37% stake in Campofrio. Under Spanish takeover law, an investor with a 30% shareholding in a business has to table a bid for the rest of the business.
Shuanghui completed its takeover of Smithfield, the world’s largest pork processor, yesterday (26 September). In a note to the Spanish stock exchange regulator CNMV, Shuanghui said it would take its holding in Campfrio below 30%.
Kepler Cheuvreux analyst Javier Campos said he expected the move. “We thought it was unlikely that Shuanghui would finally launch a full bid for Campofrío and, that the final decision was going to be to reduce the stake below the 30% level, which is what Shuanghui has just announced,” Campos said.