Japan's  Nissin Foods hikes stake in URC joint venture, buys Payless noodle factory

Gokongwei-led Universal Robina Corp. (URC) has lowered its stake in a joint venture with Japan's Nissin Foods Holdings Co. Ltd. as part of moves to integrate their instant noodle business in the Philippines.

 

In a disclosure to the Philippine Stock Exchange Tuesday, URC said it diluted its share in Nissin-Universal Robina Corp. (Nissin-URC) to 51 percent from 65 percent – giving way for Nissin Foods (Asia) Pte. Ltd. to increase its stake in the joint venture.

 

Nissin-URC produces, sells and distributes various instant noodle products in the Philippines under the Nissin brand, including Nissin Cup Noodles, Nissin Ramen and Nissin Yakisoba.

 

With Nissin having a bigger stake in Nissin-URC, URC said the instant noodle maker will have access to more advance technology and greater capacity to innovate and create noodle products and meet the ever changing needs of consumers.

 

"We have been with Nissin-URC since 1995 and know that Nissin and Payless are great products that have a lot of potential, especially in a growing market such as the Philippines,"  Eigo Ogiwara, Asia chief representative Nissin Foods Holdings Co. Ltd., said in a statement.

 

In the same disclosure, URC said Nissin-URC acquired the license to produce local Payless products after it bought URC’s Tarlac noodle plant, equipment, and inventories.

 

URC managing director Nilo Mapa said the resulting synergy will make Payless and Nissin bigger market players and the company more efficient and profitable.

 

"This transaction will help us ride the wave of growth that we expect in the coming years and beyond. We are now second in the market and we want a bigger piece of the pie," he noted. – Danessa O. Rivera/VS, GMA News