Mexican frozen food company Sigma Alimentos and China's Shuanghui International Holdings on Monday reached a deal to share ownership of Spanish meat processor Campofrio Food Group SA. The deal values Campofrio at €700 million ($957 million).
According to Reuters, the deal gives Sigma an initial 44.7% stake in Campofrio. It also allows Shuanghui to keep its 37% holding in the canned ham and hotdog group without having to launch a full takeover bid itself.
Sigma will launch a bid to delist the remaining 18% of Campofrio from Spain's stock market following the agreement with Shuanghui. Sigma is part of Mexican conglomerate ALFA, the report said.
Campofrio shareholders collectively owning 44.5% of the company had already backed Sigma's €6.8 per share bid last month, but Shuanghui's intentions were unclear. Shuanghui inherited its stake in Campfrio after buying US Smithfield Foods in September, Reuters said.
Under the deal, Shuanghui will sell shares to Sigma at €6.9 each to bring its stake below 30%, the legal requirement for launching a full bid. Shuanghui will buy them back to become Campofrio's second largest shareholder, the report said.
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