Sanderson informs SEC it still expects merger to happen

Sanderson Farms stated that it still expects a merger with Wayne Farms to happen, expressing that expectation in a filing with the U.S. Securities and Exchange Commission.

Roy Graber Headshot
(Sanderson Farms)
(Sanderson Farms)

Sanderson Farms, in a filing with the U.S. Securities and Exchange Commission (SEC), stated that it still expects a merger with Wayne Farms to happen.

The filing, dated June 29, can be seen in the form of a Form 8-K on the Sanderson Farms investor relations webpage.

In the filing, Sanderson Farms addressed the proposed transaction in which Cargill and Continental Grain Company reached an agreement to acquire Sanderson Farms and merge it with Wayne Farms, a poultry integrator owned by Continental Grain. That planned transaction was announced on August 8, 2021, and less than two months later, Sanderson Farms shareholders approved the proposed buyout.

A portion of the Form 8-K reads: “The merger agreement and certain related proposals were approved by the company’s stockholders at a special meeting of the company’s stockholders held on October 21, 2021, and the parties to the merger agreement continue to work to satisfy the other conditions to the closing of the merger. While the company no longer expects the merger to be completed in the first half of the calendar year 2022, the company continues to expect the merger to be completed in accordance with the terms of the merger agreement.

“There can be no assurance, however, that the conditions to the closing of the merger will be satisfied or that the parties will waive any of such conditions, or that the completion of the merger will occur on or before the end date (as defined in the merger agreement).”

When the proposed transaction was announced, Cargill, Continental Grain and Sanderson Farms all expected the deal to have already been finalized by now. However, the deal has been subject to much scrutiny from both members of Congress and federal regulators, and some analysts have speculated that the deal may never materialize.

The Nasdaq stock exchange last week published a report that Sanderson Farms, traded under the ticker SAFM, would be delisted and the deal with Cargill and Continental Grain would close on June 23. However, that report was published erroneously and was removed.

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