S&P Negative on Sigma Euro Venture

S&P has put the BBB ratings of Sigma Alimentos on negative watch, it says, following the Mexican’s move to take control of Campofrio Food Group in Europe. The move is funded in the short term by a EUR675m ($908m) term loan. Sigma has also filed for an IPO in Mexico that could improve its credit profile following the additional debt. Sigma announced a EUR675m bid for the European meat company earlier this month. The food products unit of Grupo Alfa has signed purchase agreements with shareholders for shares representing 45.2% of the company, and plans to launch a cash tender offer to buy the remaining shares.