Campofrio withdraws from Philippines - Brief Article

Eurofood, April 26, 2001

Spanish firm Campofrio has withdrawn from the Philippines following the announcement that it has agreed to sell its stake in a joint venture with the San Miguel Corporation (SMC) to the Philippine giant.

Campofrio began operating in the Philippines around ten years ago through a joint venture with the Philippine conglomerate San Miguel. The venture was called San Miguel Campocarne Corporation, but the Spanish firm has decided that the venture no longer fits with its strategy. In a statement, the Spanish concern said, "Our current management thrust focuses on consolidating our processed meats business in Europe and maintaining a presence in the Philippines no longer fits our growth strategy at this time."

Campofrio has agreed to sell its 50% stake in San Miguel Campocarne Corporation to SMC. Financial details of the deal have not been disclosed.

Last March, San Miguel began legal proceedings against the Spanish concern in order to compel it to buy out the conglomerate's stake in the joint venture.

Campofrio remains present in Russia, Poland, Romania, Portugal, France the US and Spain.