URC gains full control of Hunt joint venture

Universal Robina Corp. (URC), the listed snack foods giant of the Gokongwei Group, said Monday it would acquire 50 percent of the outstanding shares of US-based ConAgra Grocery Products Co. from their joint venture, Hunt-Universal Robina Corp. (HURC).

As a result, URC will have full control of HURC, the company disclosed to the Philippine Stock Exchange (PSE) Monday.

“The acquisition of the HURC shares of ConAgra will result in URC having full control of HURC and will allow URC to integrate and simplify its business operations as part of its Philippine business portfolio. URC will continue to manufacture and sell Swiss Miss Products under a trademark license agreement with ConAgra,” URC said.

“URC shall pay the total consideration of P3.18 million for the shares of ConAgra in HURC, representing 50 percent of ConAgra’s share in the joint venture,” URC added.

Formed in 1983, the joint venture was engaged in the business of manufacturing, processing, packing and selling food and food products such as vegetables, fish, dairy products, fruits and other agricultural products.

Last week, URC announced it was taking over its joint venture business with Japanese snack foods giant Calbee after the latter decided to pull out of the Philippines.

Four years since entering the Philippines, Calbee decided to pack its bags, saying its business in the country was not making money.

URC said it would purchase 50 percent of the outstanding shares of the Calbee-URC joint venture through a share purchase agreement signed on Sept. 25.