Talks of a joint venture for a flour business in the Philippines between local food and beverage firm RFM and Switzerland-based Zuellig Group have fizzled out, reports the Philippine Daily Inquirer.
In a news briefing following a stockholders' meeting last week, RFM vice president Ramon Lopez disclosed that RFM and Zuellig were no longer talking about a strategic partnership.
"We don't know what their plans are for the Philippines," Lopez said. "We haven't heard from them again."
RFM held discussions with Zuellig early this year to explore opportunities in the flour business. According to the news report, RFM was looking for strategic partners to strengthen its remaining businesses following the divestment of its controlling stake in Cosmos Bottling Corp.
The widely diversified Zuellig Group established a foothold in the Philippines in 1939 through Zuellig Pharma, which focused exclusively on the pharmaceutical and healthcare markets. This year the company appeared to be keen on forging a partnership with RFM focusing on the flour business, where it already has an exposure in other countries.
The report adds that RFM intended to spin off its flour business and sell a 50 per cent stake to a foreign strategic partner.