Canada Doesn't Intend To Challenge Conagra Brands' Acquisition Of Pinnacle Foods

(RTTNews) - Conagra Brands, Inc. (CAG) and Pinnacle Foods Inc. (PF) announced that they have received a "no-action letter" from the Canadian Competition Bureau confirming that the Commissioner of Competition does not intend to challenge Conagra Brands' acquisition of Pinnacle Foods.

The receipt of the "no-action letter" satisfied one of the conditions necessary for completion of this transaction.

The transaction is expected to close by the end of calendar year 2018, and is subject to other customary closing conditions.

In June 2018, Conagra Brands and Pinnacle Foods Inc. announced a definitive agreement under which Conagra Brands would acquire all outstanding shares of Pinnacle Foods in a cash and stock transaction valued at approximately $10.9 billion, including Pinnacle Foods' outstanding net debt.

Pinnacle Foods shareholders would receive $43.11 per share in cash and 0.6494 shares of Conagra Brands common stock for each share of Pinnacle Foods held. On a pro forma basis, Pinnacle Foods shareholders are expected to own approximately 16% of the combined company, assuming issuance of the incremental equity to the public.