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SMITHFIELD, Va. -- Smithfield Foods Inc. completed its $674 million acquisition of Premium Standard Farms Inc., after the deal met with the approval of federal regulators late last week.
After an extended review of the transaction, the Justice Department said that the combined firm would still face competition in fresh and processed pork and therefore did not run afoul of antitrust rules.
The company said it exchanged 0.678 Smithfield shares plus $1.25 in cash for each Premium Standard share. Smithfield issued approximately 21.7 million new shares for the exchange. Smithfield also took on Premium Standard's approximately $125 million in debt.
Smithfield is the largest hog producer and pork processor in the United States, with annual revenues of more than $11 billion. Premium Standard, based in Kansas City, Mo., is the second-largest hog producer and sixth-largest pork processor with annual revenues of about $900 million.