First Pacific, Nissin buy top Indonesian noodle maker

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MANILA--Hong Kong-based First Pacific and Nissin Food Products of Japan have formed a 50:50 joint venture for the purchase of 60% of PT Indofood, Indonesia's premier food company and the world's largest producer of instant noodles, valued at $570 million.

Indofood is owned by the Salim Group, one of the largest conglomerates in Indonesia. It accounts for approximately 90% of Indonesia's instant noodles market, 80% of its wheat flour market and more than 60% of the local market for branded cooking oil, shortening, margarine, baby food, and snack products.

The Indofood joint venture combines First Pacific's extensive international marketing experience and financial skills with that of Nissin Food,which invented instant noodles. Nissin currently sells four billion servings of noodles annually in more than 80 countries under such brands as Top Ramen, Cup Noodle and Demae Itocho.

Through the acquisition, both First Pacific and Nissin Food will own anindirect 30% interest in Indofood.

Copyright October 1999, Crain Communications Inc.

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