Chinese pork manufacturer Shuanghui has received $7.9 billion in loans from Bank of China and Morgan Stanley for its acquisition of America’s largest pork producer Smithfield Foods.

On May 29, Shuanghui International and Smithfield made a joint announcement stating the two sides have reached a merger agreement, and Shuanghui will acquire all of Smithfield’s outstanding shares and its debt valued at $7.1 billion.

The New York Branch of Bank of China will lend $4 billion to Shuanghui, according to a document submitted to the US Securities and Exchange Commission by Smithfield Foods on Tuesday. Morgan Stanley, which is advising Shuanghui on the takeover, will provide $3.9 billion in loans.

Bank of China will use Shuanghui’s assets and property, as well as Smithfield’s equity as collateral.

The $3.9 billion from Morgan Stanley will mainly be used to cover Smithfield’s debt. The financing includes $750 million in revolving credit instruments, a $1.65 billion term loan and a $1.5 billion bridge loan.

However, the acquisition is not without obstructions. One of the largest shareholders of the Smithfield Starboard Value sent a letter to the Board requiring the company to consider splitting its business groups to replace Shuanghui’s acquisition on June 17.

But Smithfield said in a statement that the Board unanimously agreed the acquisition is best for the company and its shareholders. The deal is expected to be completed in the second half of the year.

If the takeover is successful, the deal is likely to be China's largest corporate acquisition of a US company.