BREWERS' GUARDIAN: Kirin-Suntory merger on track

Kirin-Suntory merger on track
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Rob Brown on 05 February, 2010 04:03:00
 
The consolidation Japan’s two largest drinks companies, Kirin and Suntory, is
taking shape, according to a report out of the country.
Japan’s Daily Yomiuri newspaper reported today that Kirin has agreed to give
its suitor a one-third stake in the new giant, which would be one of the
world’s largest FMCG companies and Japan’s biggest beer-maker.
A stake of at least 33.4% would give Suntory the power to veto key decisions in
the running of the company.
With combined sales of around US$41 million, a Kirin-Suntory combination would
be almost triple the size of Asahi, presently Japan’s largest brewer.
As the domestic beer market continues to decline, Japan’s beer-makers are
increasingly looking overseas for future opportunities.