• Deal follows Sigma's takeover bid for Campofrio
  • Shuanghui attained Campofrio stake via Smithfield acquisition
  • Will jointly run meats group 

Spain-based meats group Campofrio is to be jointly controlled by Mexican food manufacturer Sigma Alimentos and China's Shuanghui International.

Last month, Sigma launched a takeover bid for Campofrio, in which Shuanghui held a stake after its acquisition of US pork processor Smithfield Foods earlier this year.

After that deal was completed, Shuanghui had indicated it would take its stake in Campofrio below 30% to avoid having to buy the business under Spanish takeover rules.

However, Shuanghui's intentions became less clear in the wake of Sigma's takeover bid for Campofrio.

However, in an announcement today (23 December), Sigma and Shuanghui have struck a deal to run Campofrio, which sells meats under its namesake brand, plus others including Aoste and Caroli.

Sigma will hold a 44.72% stake in Campofrio, while Shuanghui will own 36.99%. The Mexican firm will apoint four members to Campofrio's board, while Shuanghui will nominate three.

After the third anniversary of Sigma's bid, both companies will be able to exit the venture and sell its stake - or buy out its partner.