Continental Grain Co stated on Monday that it would sell its entire stake after Shuanghui International Holdings advanced to buying Smithfield with its multi-billion dollar deal. This will prevent any impending proxy battle.
According to Reuters data, Continental Grain holds a 5.84% stake in Smithfield as of April 25. Continental Grain was originally established in Arlon Belgium in 1813 and moved to the US after World War II.
Continental has sent Smithfield notice last March urging the breakup of the two firms and advanced towards a proxy fight with the pork producer. The company has filed a presentation with the US securities regulators last April, which sought shareholder support. This included a turn around plan that would break Smithfield to three companies.
However, with Shuanghui International Holdings announcing last Friday that it will buy Smithfield Foods for US$4.7 billion, Continental Grain Co announced to exit its long-term ownership with Smithfield Foods.
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