Shares of Sanderson Farms Inc. SAFM, +0.59% were indicated up about 7% in premarket trading Monday, after the chicken producer confirmed an agreement to be bought by a Cargill and Continental Grain Co. joint venture in a deal valued at $4.53 billion. The JV will pay $203 a share in cash for each Sanderson Farms share outstanding, an 11.3% premium to Friday’s closing price of $182.37, and is 4.6% above the June 25, 2021 record close of $194.06. The Wall Street Journal had previously reported a deal was in the works. After the deal closes, which is expected to occur by the end of 2021 or early 2022, Sanderson Farms will be combined with Continental Grain subsidiary Wayne Farms to form a new privately held poultry business. “We are proud to be joining with Cargill and Continental Grain and we are confident that they will be strong stewards of the Sanderson Farms team, brand and assets going forward,” said Sanderson Farms Chief Executive Joe Sanderson. Sanderson Farms’ stock has run up 38.0% year to date through Friday, while the S&P 500 SPX, +0.17% has gained 18.1%.
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