IMPLEMENTATION LEVEL

IFI

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
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Inception date: 19 Jun 2018 | Removal date: open ended
Still in force

State loan

On 19 June 2018, the Nordic Investment Bank (NIB) and Danish Crown A/S signed a loan agreement having a total value of EUR 100 million (approx. USD 116 million). The loan will support the company's acquisition of the Danish company DK-Foods, a pepperoni producer. Notably, the acquisition was completed in May 2018. The maturity of the loan is 7 years. 

According to the NIB, the acquisition will support: "Danish Crown’s strategy to become a global leader in canned products, snacks and other profitable segments in food service." Notably, the loan also supports the Danish company's acquisition of a Polish company as well as the construction of a meat processing plant in China, see related intervention. 

Danish Crown A/S has its headquarters in Denmark with 14 offices worldwide. The company is a meat processing company providing various meat products of pork or beef including fresh packaged meats. According to the company, the Group is the largest pork exporter in the world "selling pork cuts in more than 80 countries worldwide."

The NIB is an international financing bank and is jointly owned by Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The bank provides financing to private and public projects mainly located in the eight countries at attractive conditions. The eligibility criteria of NIB financing is that: "All projects financed by NIB should improve competitiveness and/or the environment, in accordance with NIB's mandate and eligibility criteria. Furthermore, outside the membership area, projects financed by NIB should be of mutual interest to the country of the borrower and the member countries." 

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support granted here is discriminatory.

AFFECTED COUNTRIES

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AFFECTED SECTORS AND PRODUCTS

211 Meat & meat products
1601 Sausages and similar products, of meat, meat offal or blood; food preparations based on these products.
160100 Sausages and similar products, of meat, meat offal or blood; food preparations based on these products.

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