Opinion: Shuanghui loan – a high hurdle, but banks need to get over it
Shuanghui International’s $4bn loan to support its acquisition of Smithfield Foods is getting plenty of heat from bankers in Asia, who dislike the deal’s structure. Their concerns are legitimate, but it is time they stopped complaining and prepared to step out of their comfort zones.
A takeover is never simple, particularly if it involves a lot of debt. Add to that an acquirer that is based offshore but does all its business in China, and it only becomes more complicated. And that’s before you factor in possible US political resistance.
The deal in
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