The largest hotdog producer in the United States, Mexican Sigma Alimentos, has issued an offer of almost 700 million euro for its Spanish competitor Campoforio. The latter is the parent company of, amongst others, Belgian meat group Imperial Meat Products.
Sigma Alimentos is prepared to pay 695 million euro for Campofrio from Madrid, employer of more than 11,000 people and the largest meat processing company in Europe. The Mexican food group has a 2.75 billion euro turnover and already has 44.7 % of Campofrio’s stock, now targeting the 37 % currently owned by China’s largest pig breeder, Shuanghui International Holdings.
Business banks believe it is very likely the Chinese will accept the offer, as Campofrio’s hotdogs and canned meat are not that popular in China. On top of that, Shuanghui is thought to be focusing completely on Smithfield’s integration.
The international manoeuvres also influence Belgium, as Campofrio owns Imperial Meat Products, which manages a 200 million euro turnover, employing 800 people. The company has five factories: Imperial Lovendegem, Amando Destelbergen, Cornby Gent, Dacor Zwijnaarde and Champlon Salaisons in the Ardennes.
Campofrio would benefit from its purchase by Sigma Alimentos, as it would mean the Mexican and American markets would open up. It is unclear whether this would benefit Imperial Meat as well.
(Translated by Gary Peeters)