Source: Rita Jane Gabbett, MEATINGPLACE, 9/30/13

In its first move relative to Smithfield Foods assets, new owner Shuanghui International has advised the Spanish government it does not plan to make a bid for the remaining assets of Campofrio Food Group, the company disclosed in a notice to Spanish regulators.

Shuanghui, whose purchase of Smithfield became final last Thursday, announced on Friday it would reduce to below 30 percent the 37 percent share of Campofrio it inherited from three Smithfield subsidiaries.

Pursuant to Spanish law, Shuanghui was obligated to either make a bid for the company or reduce its share to below 30 percent within three months. Shuanghui chose the latter, according to a document the company forwarded to Meatingplace.

The decision is in keeping with Smithfield’s, which in 2011 announced it would not seek to purchase Campofrio, one of the leading meat processors in Europe.

Analysts at Portuguese bank BPI, however, speculated that Shuanghui could simply be buying time to assess the outcome of a Campofrio restructuring and the integration of Smithfield, Reuters reported.

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