A Deleware Chancery Court judge ruled that Tyson Foods must honor its $4.7 billion deal to purchase IBP.

The litigation between the two meat processing companies occurred after Tyson claimed the agreement was breached because IBP released faulty financial information regarding IBP’s DFG Foods subsidiary. This argument was not enough to persuade judge Leo Strine, who says the only alternative to his ruling would have been to award damages to IBP, but the amount would have been “staggeringly large.”

The two sides met in an effort to finalize the merger. The original agreement was a $3.2 billion deal, in which Tyson would pay $30 per share of IBP.

Tyson said in a statement that it is satisfied that IBP’s accounting issues have been resolved and have confidence in IBP’s management team. Tyson said that based on the discussions with IBP it did not expect to appeal the ruling.

IBP stocks rose to $25.10 on the Instinet electronic platform ahead of the official market open, after closing at $18.27 Friday. Tyson shares fell to $9.63, compared to the Friday close of $11.38.

Tyson/Reuters