China's Shuanghui International Holdings plans to launch a counter bid for meat processor Campofrio, Spanish news daily El Mundo said on Wednesday. Campofrio is a Spanish foods company whose products include hot dogs and canned ham.
Reuters in a report said that Campofrio is the target of a takeover offer from Mexican frozen food company Sigma Alimentos, who offered a bid at EUR6.8 per Campofrio share. Sigma Alimento's bid could put the value of the meat processor at EUR695 million (USD943 million).
Hong Kong-based Shuanghui inherited a 37% stake in Campofrio when it bought US pork producer Smithfield Foods for USD4.7 billion earlier this year, the report said. In September, Shuanghui announced a plan to reduce its holding in the Spanish meat processor to less than 30% by December. This would bring Shuanghui's interest below the threshold required to make a full takeover bid under the Spanish market rules, Reuters said.
El Mundo said Shuanghui now plans to fight for control of Campofrio. The Chinese holding company on Wednesday signed an USD8 billion credit line with the Bank of China to finance its international expansion.
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