Sep. 24, 2013, 9:47 AM| Sep. 24, 2013, 9:47 AM
Sep. 18, 2013, 2:38 AM
- China's Shuanghui International is reportedly on track to receive the approval of over 50% of Smithfield's (SFD) investors for its $4.7B acquisition of the U.S. pork producer. Reaching that level would allow Shuanghui to close the deal by Thursday next week.
- The shareholder vote is due to take place on Tuesday, giving activist investor Starboard, which opposes Shuanghui's offer, little time to find an alternative bidder. Starboard is expected to make some sort of announcement this week.
Sep. 9, 2013, 2:46 PM
- The approval by the U.S. government of the acquisition by Shuanghui International of Smithfield Foods (SFD +0.7%) signals an informal end to an U.S-China trade war, according to the South China Morning Post.
- Though the transition of a major U.S. food producer to Chinese hands still faces some major hurdles, the deal could have a ripple effect of lightening the mood of regulators in Beijing and Washington D.C. over any new mergers.
Sep. 8, 2013, 5:42 AM
- The Committee on Foreign Investment, which reviews the national security risks of acquisitions by foreign companies, has approved Shuanghui International's $4.7B purchase of Smithfield Foods (SFD).
- The authorization comes amid concerns that food safety will be compromised.
- The deal now needs shareholder approval, with a vote scheduled for September 24.
- Activist hedge fund Starboard Value, an owner of a 5.7% stake in Smithfield, has said it will vote against the transaction and is looking for other buyers.
Sep. 5, 2013, 6:51 AM
Sep. 3, 2013, 8:24 AM
- China's Bright Food Group is on the hunt for overseas acquisitions, according to the WSJ.
- The company, along with Shuanghui International, has helped raise the M&A premium on the food manufacturing sector with another major deal expected to occur after the purchase of Smithfield Foods (SFD) set the tone.
Aug. 8, 2013, 4:05 PM
- Smithfield Foods (SFD) breaks higher into the close on a Bloomberg report Starboard Value is seeking a group to put together a rival bid for the company.
- Starboard owns a 5.7% stake in Smithfield and last month reportedly hired advisers to push its case for a new deal.
- The company is currently under agreement to be purchased by China's Shuanghui for $34 per share.
Jul. 16, 2013, 7:00 AM
The $4.7B buyer of Smithfield Foods (SFD) - Shuanghui International - plans a Hong Kong IPO after closing the purchase, reports Reuters, with sources saying Hong Kong would place a higher valuation on the company than exchanges elsewhere. The move would provide an exit route for Shuanghui's P-E investors, including Goldman Sachs (GS).| Jul. 16, 2013, 7:00 AM
Jul. 12, 2013, 6:11 PM
Starboard Value, the activist hedge fund that owns a 5.7% stake in Smithfield Foods (SFD), reportedly is hiring advisers to help press its case for a different deal than one already arranged with China's Shuanghui. SFD has agreed to be bought by Shuanghui for $34/share, or $4.7B, in what would be the biggest Chinese takeover of a U.S. company.| Jul. 12, 2013, 6:11 PM | 1 Comment
Jun. 18, 2013, 4:43 AM
Smithfield Foods (SFD) intends to review a letter from activist investor Starboard, which reckons that the pork producer could earn more value by splitting up into three and then selling itself rather than going through with its $4.7B acquisition by Shuanghui. However, Smithfield reiterated its recommendation that shareholders vote for the Shuanghui deal, as it provides "significant, immediate and certain" cash value to shareholders.| Jun. 18, 2013, 4:43 AM
Jun. 17, 2013, 3:37 AM
Activist investor Starboard Value has reportedly taken a 5.7% stake in Smithfield (SFD) and is urging the company to split up into three rather than complete its $4.7B acquisition by China's Shuanghui. Starboard reckons Smithfield could be worth $44-55 if it were to break up into separate U.S. pork production, hog farming and international-sales companies, well above Shuanghui's offer of $34 a share.| Jun. 17, 2013, 3:37 AM
Jun. 10, 2013, 3:08 AM
Shuanghui International's $4.7B acquisition of Smithfield Foods (SFD) could be complicated by little-known and rarely tested laws in several states that ban foreign ownership of agricultural land. Smithfield's 11 slaughterhouses and meat factories in the states are probably exempt from the prohibitions, although the company's possible reliance on farm, feed or waste facilities could attract legal challenges. States with foreign-ownership restrictions include Iowa and Wisconsin.| Jun. 10, 2013, 3:08 AM
Jun. 4, 2013, 4:47 AM
Continental Grain intends to sell its 5.84% stake in Smithfield Foods (SFD) and not engage in a proxy battle to split the hog producer into three, Continental said yesterday. The company's decision follows Shuanghui's offer last week to acquire Smithfield for $4.7B. Continental had become the pork company's biggest shareholder and had urged it to break up in a letter sent in March.| Jun. 4, 2013, 4:47 AM
May 29, 2013, 9:56 AMHeard during Smithfield Foods' (SFD) conference call: Execs say the sale to a Chinese company is "good news" for the pork industry as a major U.S.-based food company ties in with an extensive Chinese distribution network. They also note Shuanghui sells in other major Asian markets such as Japan and Korea. Both CEOs reiterated that Smithfield's business and operations will remain largely the same. (webcast) | May 29, 2013, 9:56 AM
May 29, 2013, 8:48 AM
More on the Smithfield Foods (SFD) acquisition: Under the seemingly generous terms of its deal to be acquired by Shuanghui International, no Smithfield facilities or locations will be closed and the existing management team will remain in place. The board indicates it expects resistance from U.S. regulators and has a breakup fee embedded as part of the deal - but with pork products flowing from the U.S. to China - (instead of the reverse) - landing approval may be easier than in prior U.S.-China mergers. SFD +25.1% to $32.49, 4.6% below the deal price.| May 29, 2013, 8:48 AM
May 29, 2013, 7:43 AM
Smithfield Foods (SFD) confirms it sold itself to Shuanghui International for $34 per share in a deal valued at $7.1B. The transaction is slated to close in the second half of 2013 after regulators weigh in. SFD +25.9% premarket to $32.70.| May 29, 2013, 7:43 AM | 5 Comments