Continental Grain Company said it will exit from its long-term ownership stake in Smithfield Foods Inc., saying it is satisfied with its investment return after the world’s largest hog farmer and pork processor last week agreed to a $4.7 billion acquisition by Shuanghui International Holdings Ltd. Continental Grain, together with several related parties, recently owned roughly 6 percent of Smithfield. Smithfield had seen its revenue decline in recent quarters amid lower meat and live-hog prices and weaker domestic retail demand.
“We have been advocating for value creation and are pleased that the Smithfield board of directors and management are being proactive in realizing value for the benefit of all of its shareholders,” Continental Grain Chairman and Chief Executive Paul Fribourg said Monday.
China’s largest meat processor Wednesday agreed to pay $34 a share for Smithfield, a 31-percent premium to the company’s Tuesday closing price, in a deal that would mark the biggest Chinese takeover of a U.S. company. Including debt, the deal values Smithfield at $7.1 billion.
