October 21, 2008

  

Smithfield's shares rally after government grants approval of JBS purchase
        
 

Stocks of Smithfield Foods (SFD) is rallying more than 10 percent after the US Justice Department said it approved JBS' purchase of Smithfield Foods' beef unit.

 

JBS is expected to pay Smithfield US$565 million in cash for its beef business, according to reports.

 

On the other hand, the Justice Department said it was seeking to block JBS' purchase of National Beef Packing, saying the merger would create the largest US packer with more than one third of US slaughter ready cattle capacity, raising prices for consumers and lowering prices for those cattle suppliers.