MADRID – The shareholders meetings of Campofrío Alimentación SA and Groupe Smithfield Holdings SL recently approved a merger between the companies, creating one of the largest processed meat companies in Europe.

Once the process is finalized, the shareholders of the company, which will be called Campofrío Food Group, will include Smithfield Foods, Oaktree Capital, Pedro and Fernando Ballvé, Díaz Family, Caja Burgos and QMC.

Following the decision of both shareholders meetings, Spanish securities regulator CNMV must authorize the exemption of Smithfield Foods to launch a takeover bid on Campofrío's shares, since it will exceed threshold of the 30% of the voting rights.

The new company will reportedly be positioned as the market leader in Spain, France, Portugal and The Netherlands while also maintaining an important presence in Romania, Germany, the United Kingdom, Italy and Belgium.

"We are very proud with the fact that the merger with Groupe Smithfield has generated the support of the majority of the shareholders of Campofrío. It is a solid operation with a strong strategic significance. It will generate value for all stakeholders of the company," confirmed Pedro Ballvé, president of Campofrío.

Source: Smithfield Foods Inc.