Shuanghui Signs $8 Billion Funding Deal With BOC for ExpansionMichelle Yun
Shuanghui International Holdings Ltd., the Chinese company that bought the world’s biggest pork supplier this year, signed an $8 billion non-binding funding agreement with Bank of China Ltd. as it seeks to expand.
Funding from the accord can be put toward investments in operations, fixed assets, international trade initiatives and potential acquisitions, the Hong Kong-based company said yesterday in a statement.
Shuanghui, which controls China’s biggest pork producer, took over Smithfield Foods Inc. for $4.7 billion after U.S. regulators and the target’s shareholders approved the deal in September. It funded the deal with a $4 billion loan, two people familiar with the matter said in September.
“We are deeply grateful for their strong and sustained support as we continue to explore ways to profitably expand our business worldwide,” Wan Long, Shuanghui’s chairman, said in the statement yesterday, referring to the Bank of China.
Buying Smithfield gave Shuanghui a 37 percent stake in Madrid-based sausage-maker Campofrio Food Group SA, according to data compiled by Bloomberg. Campofrio is the target of a 675 million euro ($916 million) bid by Alfa SAB’s Sigma Alimentos food unit.