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Shuanghui signs $4b bank deal for Smithfield

Updated: 2013-09-03 15:52

Chinese pork producer Shuanghui International Holdings Ltd, announced on Monday that it signed a $4 billion loan with a bank consortium to secure the takeover of the world's largest hog farmer and pork processor,Smithfield.

The loans, which comprises a $2.5 billion, three-year tranche and a $1.5 billion five-year tranche, came from eight international and local banks, including Bank of China, Standard Chartered Bank, Industrial and Commercial Bank of China (Asia) Ltd, DBS Bank and Royal Bank of Scotland, the company said.

Wan Long, the chairman of Shuanghui, said in a statement that all the banks have shown confidence in the company and the syndicated loan has further enhanced their financial strength to expand internationally.

The company announced in May that it would acquire Smithfield for $34 per share in cash in a deal that values Smithfield at about $7.1 billion including its $2.4 billion debt, marking the deal the largest Chinese takeover of an American company.

Smithfield said earlier that the deal had already passed antitrust investigations in the US, but still needs to get the approval of the company's shareholders and meet US regulations concerning foreign capital mergers and acquisitions.

The deal is expected to be completed in the second half of this year.