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Shuanghui and Sigma Alimentos to share ownership of Campofrio

Staff writer |
Shuanghui International Holdings Ltd and Sigma Alimentos SA de CV said in a joint statement they have reached an agreement to share ownership of Spanish meat processor Campofrio.

Shuanghui is China's largest meat processor. Shuanghui became Campofrio's largest shareholder when it acquired Virginia-based Smithfield Foods Inc for a record-breaking $4.7 billion in September 2013. Previously, the Chinese meat processor said it was considering plans to reduce its stake in Campofrio to below 30 percent.

Under the deal, Shuanghui will hold 37 percent of Campofrio, while Sigma will take an initial 44.7 percent. Shuanghui will appoint the deputy chairman and two members of Campofrio's seven-strong board, while Sigma will appoint Campofrio's chairman and three other board members, the agreement said.

For regulatory reasons, Sigma will raise its offer for Campofrio shares from 6.8 euros ($9.30) to 6.9 euros apiece.

Campofrio saw revenue of 1.39 billion euros in the first nine months of 2013, according to its latest financial report.

The size of the upcoming deal is about $6 billion depending on market conditions, Reuters said, quoting a source it said was familiar with the matter.

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