Shuanghui's US$4.7 billion bid for Smithfield Foods raises US$5 billion
On Friday, banking sources stated that Shuanghui International's US$4.7 billion offer for Smithfield Foods, a US meat processor, raised US$5 billion more from banks. Shuanghui was China's pork producer that had a US$4 billion loan support. With the amount it was able to raise, its bid for Smithfield Foods was expected to climb to US$9 billion.
The first to promise a US$1 billion underwriting was Rabobank. It focused on food and agribusiness lending. Natixis, Royal Bank of Scotland and Standard Chartered Bank followed with US$1 billion pledge each.
Credit Agricole CIB, DBS Bank, Industrial & Commercial Bank of China and ING Bank were the other banks that wanted to venture on the deal. However, they were still securing the credit approval, the bankers said.
The international banks gave a positive response while the US lawmakers evaluate the deal.
The transaction was expected to be the largest acquisition by a Chinese corporation on a company in the US.