The Schneider family has confirmed it is selling its controlling stake in Schneider Corp. to Smithfield Foods, virtually sealing the deal that will see the American giant enter the Canadian packing industry.
Maple Leaf Foods, which had also bid for the company, comes out the loser, having made a pricey bid for a company that their competitor is getting cheap.
Smithfield’s offer is all stock, not cash, and the price of its stock has slid in recent months. At one time the Smithfield offer was worth about $25 per Schneider share. Now it is worth less than $20 per share.
Maple Leaf is still offering $29 cash per share. The Smithfield deal closes Nov. 18. The Schneider family owns less than one quarter of Schneider’s equity, but holds 74 percent of the company’s voting stock.
