US-based snacks manufacturer Snyder's-Lance’s acquisition of Diamond Foods has inched closer to completion with the expiration of anti-trust approval waiting period.According to the previously announced acquisition deal, Snyder's-Lance will take over all the issued and outstanding shares of common stock of Diamond Foods.
Snyder's Lance and Diamond Foods had filed Pre-Merger Notification and Report Forms as required by the Hart-Scott-Rodino Antitrust Improvements Act of 1976 with the US Federal Trade Commission.
The expiration of the waiting period satisfies one of the closing conditions required for the completion of the acquisition process. The transaction, however, is subject to other closing conditions, which include the approval of shareholders.
In October, Snyder's-Lance announced that it would acquire snack food and culinary nut company Diamond Foods for approximately $1.91bn, which includes $640m of debt.
The terms of the agreement state that on completion of the acquisition process, Diamond Foods stockholders will receive 0.775 Snyder's-Lance shares and $12.50 in cash for every Diamond Foods share.
The takeover deal, which is slated to be completed in early 2016, had been approved by the board of directors of both the companies.
The acquisition deal will help Snyder's-Lance to expand its business across the snacking segment and enhance its existing food channel presence.
The company expects this transaction can help it strengthen its Direct Store Delivery (DSD) network in the US and provide a platform for growth in the UK and across Europe.
