MADRID (Reuters) - Spanish meat producer Campofrio will merge with a
European subsidiary of U.S. pork producer Smithfield Foods Inc euro
each, which would represent 48.5 percent of the new company and would be held by
GSH shareholders. Campofrio would control 51.5 percent.
After the merger, Campofrio said Smithfield would have an indirect 37.0
percent stake in the Spanish group.
The deal signed between the pair establishes a standstill period of three
years after the merger, during which Smithfield has agreed not to exercise the
voting rights which would correspond to a shareholder with more than 30 percent.
Nor will Smithfield name more than half of Campofrio's board members, said
Campofrio.
Under the terms of the deal, Smithfield would be obliged to launch a 100
percent takeover bid for Campofrio's shares if at the end of the three-year
period, Smithfield had increased its stake or appointed more than half of
Campofrio's board members.
The merger is conditional on winning regulatory approval and approval from
both companies' shareholders. (Reporting by Sarah Morris; Editing by David
Holmes)
tf.TFN-Europe_newsdesk@thomsonreuters.com
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