La Cofece authorizes the purchase of Granjas Carroll by Smithfield Foods
The Federal Economic Competition Commission (Cofece) authorized the merger between Smithfield Foods and Agrobiotecnología Industrial de México.
The notified operation consists of increasing Smithfield’s indirect participation in the capital stock of Granjas Carroll de México.
At the beginning, on December 18, 2020, Smithfield and Agrobiotecnología Industrial de México (ABIM) notified Cofece of their intention to carry out a concentration.
On the one hand, Smithfield Foods is a pork producer and food processor based in Smithfield, Virginia, in the United States, and a wholly owned subsidiary of the privately held WH Group.
Meanwhile, WH Group formerly known as Shuanghui Group, is a publicly traded multinational meat and food processing company based in Hong Kong.
Smithfield began as a pork processing operation called The Smithfield Packing Company, founded in 1936 by Joseph W. Luter and his son, Joseph W. Luter, Jr.
Through a series of acquisitions that began in 1981, the company has become the world’s largest pork processor and producer.
Smithfield Foods
This company produces and markets a wide variety of fresh and packaged meat products both in the United States and internationally.
Smithfield Foods operates in a cyclical industry and its results are affected by fluctuations in commodity prices.
Also, some of the key factors that influence your business are customer preferences and demand for your products; your ability to maintain and grow customer relationships; the introduction of new and innovative products on the market; accessibility to international markets for its products, including the effects of any trade barriers; and operational efficiencies of its facilities.
At least until 2016, when it was still a public company, the international segment consisted mainly of its meat processing and distribution operations in Poland, Romania and the United Kingdom, its interests in the meat processing operations in Mexico, its meat processing operations pig production located in Poland and Romania, its interests in the pig production operations in Mexico and its former investment in Campofrío Food Group.
