Food business conglomerate Universal Robina Corp (URC) announced on Wednesday that it will be merging with its wholly-owned packaging subsidiary CFC Clubhouse Property Inc (CCPI).
The amount of the merger was not disclosed.
CCPI is one of the major suppliers of flexible packaging materials for URC’s snacks and beverages division.
The Gokongwei-led firm informed the stock exchange that its board of directors approved the merger on Tuesday, noting CCPI is expanding its capacity to accommodate URC’s increase in demand for dry laminated and extruded wrappers.
“The proposed merger is expected to benefit URC in the reduction of expenses through the economies of scale, centralised administration and greater efficiency,” URC said in its statement.
CCPI started the ground work for its flexible packaging materials production in the Philippines on December 15, 2005 and commercial production on April 1, 2007.
URC said it will provide further updates on the final merger consideration and timing of closing and funding sources when they are finalised.
URC’s last traded price remained at P215 since yesterday.
Related story: Universal Robina gets $576m loan for NZ buyout