Goldman Sachs and CDH Investments, a China-focused private equity firm, have gained regulatory approval from China’s State-owned Assets Supervision and Administration Commission (SASAC) to acquire Shuanghui Group, a local meat processing firm.
The Goldman Sachs consortium outbid CCMP, a pan-Asian private equity firm that spun out of JP Morgan, in April for a majority stake in Shuanghui, with a RMB 2 billion offer ($250 million).
A listed affiliate of Shuanghui said in a regulatory filing that the transaction is now only pending the final regulatory approval from Ministry of Commerce.
According to a report by South China Morning Post, a Hong Kong daily newspaper, some within the ministry are resistant to such deals, which are drawing criticism from opponents of foreign acquisitions of leading Chinese companies.
China has recently introduced new measures governing foreign acquisitions of local assets. Under the new rules, the central government will gain greater control in the approval process of transactions perceived to harm China’s economic interests, or if they result in monopolies in certain sectors.