Pork processor and hog producer Smithfield Foods Inc. is in talks to buy a controlling interest in Spain-based packaged meats company Campofrio Food Group SA for €9.5 (US$13.62) per share.

Smithfield, which currently owns 37% of Campofrio, and Campofrio Chairman Pedro Ballve are considering a takeover bid for an approximately 50% stake in the company. No financing arrangements have been finalized, but Smithfield has said that it expects the estimated €500 million (US$716.7 million) needed for the offer would be provided through a combination of existing liquidity and capital market financings.