UNITE HERE has sent a letter to Spanish regulators raising concerns about the reported interest by Kam Fung, a Chinese property developer, in acquiring Spanish meat processor Incarlopsa. The concerns center on Kam Fung’s relationship with troubled state-owned distressed asset manager China Huarong Asset Management, and the Chinese government’s encouragement of purchases of international agricultural assets.
In April, Reuters reported that China’s Kam Fung Group Company was in talks to acquire 95% of the shares in Spanish pork producer Incarlopsa. The Reuters report stated Kam Fung was in talks about forming a consortium with a unit of China Huarong.
Soon after the Reuters report about Kam Fung’s interest in Incarlopsa was published, Chinese business outlet Caixin reported that Huarong’s chairman, Lai Xiaomin, was under investigation by the Communist Party of China’s Central Commission for Discipline Inspection for “serious violations of party discipline and law.” In August, Caixin reported that graft investigators found 270 million yuan in cash at properties owned by Lai; the bills of Chinese yuan and other currencies weighed nearly 3 tons.
While Incarlopsa has denied that it is engaged in a sale process, Kam Fung and Huarong could make a bid for the company at any time. The letter raises questions for Spanish policymakers to consider in evaluating a potential bid.
UNITE HERE was alerted to these issues while investigating the Renaissance Shanghai Pudong East, which is partially owned by Huarong and associates related to Kam Fung.