Nissin Food to Buy Midsize Frozen Food Maker

Tokyo, June 7 (Jiji Press)–Japan’s Nissin Food Products Co. plans to buy Nicky Foods Co., a midsize frozen food maker, after the company pulled out of a joint bid for another frozen food maker.

Nissin Food, a major noodle maker, plans to acquire all shares in Osaka-based Nicky Foods as early as July from its founding family for about 1.8 billion yen, company officials said Saturday.

Nissin Food is set to announce the deal on Monday.

Nicky Foods has been financially troubled since earlier this year when traces of pesticide were found in frozen foods made by a Chinese subsidiary.

In November last year, Nissin Food and Japan Tobacco Inc. agreed to jointly take over Katokichi Co. But Nissin Food dropped out in February due to a food poisoning scandal involving Chinese-made dumplings imported by a JT unit, leaving JT taking full control of Katokichi.END

(c) 2008 Jiji Press English News Service. Provided by ProQuest Information and Learning. All rights Reserved.