THE Philippine Competition Commission (PCC) has cleared the proposed sale by Universal Robina Corp. (URC) of a 21-percent stake in instant noodle joint venture Nissin Universal Robina Corp. to Nissin Foods Asia Co. Ltd.
In a disclosure on Wednesday, Universal Robina said it received the PCC certification clearing the transaction on Aug. 25.
The Gokongwei-led firm said that Nissin Foods would acquire 39.69 million Nissin Universal shares, giving Nissin Foods a 70-percent majority ownership. Universal Robina's stake, meanwhile, will fall to 30 percent.
Established in 1994, Nissin Universal is a joint venture between Universal Robina and Nissin Foods that manufactures and sells instant noodles in the Philippines. Universal Robina, meanwhile, is a subsidiary of conglomerate JG Summit Holdings Inc.
Under the revised partnership, Nissin Foods will take an enhanced leadership role in product innovation and brand-building for Nissin Universal’s noodles business, leveraging its global capabilities in these areas.
Universal Robina will remain the local operating partner in the Philippines and will continue to be involved in Nissin Universal’s day-to-day operations. It will also contribute its local market knowledge, route-to-market capabilities and execution expertise.
The transaction is scheduled to take place on Jan. 7, 2027, subject to customary closing requirements. Universal Robina said the consideration for the stake sale would be finalized by December 2026 and paid upon satisfaction of the conditions precedent.
The price per share and total consideration have yet to be determined.
Following the closing, Nissin Foods will consolidate Nissin Universal in its financial statements while Universal Robina will recognize its economic interest in the joint venture using the equity method under applicable local financial reporting standards.
Universal Robina said the change in financial presentation will not affect Nissin Universal’s business operations, which are expected to continue without disruption during and after the transition.
On Wednesday, shares of Universal Robina dropped P1.15, or 1.85 percent, to close at P61.00 each.
