Hormel, Tyson Competitor Smithfield Foods In Talks To Be Acquired (HRL, TSN, SFD)
It was reported early on Wednesday that meat and packaged foods manufacturer Smithfield Foods Inc. (SFD) is close to being acquired by a Chinese company. As a result, shares of competitors like Hormel Foods Corporation (HRL) and Tyson Foods, Inc. (TSN) were active during pre-market trading.
The Wall Street Journal reported that Chinese company Shuanghui Group is close to acquiring Smithfield. The deal would be worth near $4.5 billion to $5.0 billion. At this price, the bid represents a 25% to 30% premium to Smithfield’s Tuesday closing price of $25.97.
Though Smithfield is not a dividend payer, the news still impacts its dividend paying competitors Hormel Foods and Tyson Foods. Investors will rush into these names, hoping that they too will be acquired, driving share prices up.
The WSJ said an official announcement of a deal between Smithfield and Shuangui could be made as early as today.
Hormel share were inactive during pre-market trading on Wednesday. Tyson shares were up 99 cents, or +3.98%, during pre-market trading.
The Bottom Line
Shares of Hormel Foods (HRL) have a dividend yield of 1.63% based on last night’s closing price of $41.68 and the company’s annualized dividend payout of 68 cents per share.
Shares of Tyson Foods (TSN) have a dividend yield of 0.80% based on last night’s closing price of $24.86 and the company’s annualized dividend payout of 20 cents per share.
Hormel Foods Corporation (HRL) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Tyson Foods, Inc. (TSN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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