Tyson Foods stated its acquisition of Hillshire Brands is nearly completed, as the companies have reached an agreement with the U.S. Department of Justice and Tyson’s tender offer to purchase all of the outstanding shares of Hillshire Brands common stock has expired. Tyson Foods, in a press release issued during the morning of August 28, stated that it expected that later in the day, Tyson should complete the merger with Hillshire Brands.
Following completion of the merger, Hillshire Brands will become a wholly owned subsidiary of Tyson and its shares will cease to be traded on the New York Stock Exchange and the Chicago Stock Exchange.
Tender offer successfully completed
Tyson Foods and The Hillshire Brands Company have announced the successful completion of Tyson's tender offer to purchase all of the outstanding shares of common stock of Hillshire Brands for $63 per share in cash, without interest. The tender offer expired at the end of August 27.
An estimated 86,987,201 shares of common stock of Hillshire Brands (not including 3,663,904 shares tendered by notice of guaranteed delivery for which shares have not yet been delivered) had been validly tendered and not validly withdrawn pursuant to the Offer, representing approximately 70 percent of Hillshire Brands' outstanding shares, advised Computershare Trust Company, the depositary for the offer. All shares that were validly tendered and not validly withdrawn have been accepted for payment.
Tyson Foods, Hillshire Brands reach agreement with Department of Justice
Tyson Foods and Hillshire Brands, in connection with the review of Tyson's proposed acquisition of Hillshire Brands by the Antitrust Division of the U.S. Department of Justice (DOJ), have agreed with the DOJ upon a proposed settlement which has been filed the U.S. District Court for the District of Columbia. The settlement is subject to approval by the court under the traditional procedures set forth in the Antitrust Procedures and Penalties Act.
One stipulation of the deal is that Tyson Foods divest of its subsidiary Heinold Hog Markets, a boars, outs and sows purchasing business that is part of Tyson Hog Markets Inc. Heinold, which accounted for less than 1 percent of Tyson’s revenue in 2013, purchases sows from farmers, then resells them to sausage makers.