SAFM - Sanderson Farms drops on report company looks to be preparing for Cargill deal close

July, 21 2022 01:32 PM Sanderson Farms Inc.

Sanderson Farms ( NASDAQ: SAFM ) fell 1.4% on a report that its employees were said to have received a memo on Thursday that the poultry maker appears to be preparing for a close of its sale to Cargill and Continental Grain, according to a CTFN report.
There's speculation in the poultry community that the U.S. Dept. of Justice is likely to approve the combination in the next few days, CTFN said.
The latest update on the deal comes after the WSJ said on Monday that Cargill Inc. and Continental Grain are reportedly in talks with the Dept. of Justice that may allow the antitrust regulator to approve the the takeover of the chicken producer.
Sanderson Farms ( SAFM ) has traded above the $203 /share deal since last month as some investors appear to hope that the transaction would be blocked and SAFM will be valued solely on its fundamentals, which have been improving due to inflation of chicken prices.
CNBC's David Faber in early March reported the sale would likely be blocked unless some changes are made to the transaction.

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