Instead of a bidding war for Campofrio Food Group SA, Mexico's Sigma Alimentos SA de CV and China's Shuanghui International Holdings Ltd. in late December reached a deal to share control of the Spanish food company.
In a regulatory filing cited by the Wall Street Journal, Sigma said it will combine its 45 percent stake in Campofrio with Shuanghui's 37 percent. Plus, Sigma will offer 6.9 euros for the remainder of Campofrio's shares.
Sigma will appoint Campofrio's chairman and three other board members, while Shuanghui will appoint the deputy chairman and two more members of Campofrio's seven-member board. Campofrio had sales of approximately $1.9 billion in the first nine months of the year.
Shuanghui became Campofrio's largest shareholder when it acquired Virginia-based Smithfield Foods Inc. last year.