MANILA, Philippines - Gokongwei-led Universal Robina Corp. (URC) on Wednesday said it is merging with its wholly-owned plastic packaging company CFC Clubhouse Property, Inc.
In a disclosure to the stock exchange, URC said the board approved the merger of CFC Clubhouse with the company.
"The proposed merger is expected to benefit URC in the reduction of expenses through the economies of scale, centralized administration and greater efficiency," the food manufacturing giant said.
CFC Clubhouse, a subsidiary of URC, is a major supplier of flexible packaging materials for URC's snacks and beverages division.
The company started commercial production in April 2007, and has a manufacturing plant in Batangas.
CFC Clubhouse is in the process of expanding its capacity to meet the increased demand from URC for dry laminated and extruded wrappers.
The company is planning to commission a new production plant by October this year.
URC, one of the largest branded consumer food and beverage product companies in the Philippines, is majority-owned by the Gokongwei family.
John Gokongwei was ranked the second richest man in the Philippines by Forbes magazine.