Kirin, Suntory abandon merger planFebruary 8th, 2010 by H&R | Categories: beverages, food, products
Kirin and Suntory, the Japanese brewing and food groups, have called off merger negotiations.
Kirin said it was unable to agree with Suntory on ways to ensure management independence and transparency within the merged company.
Suntory blamed the breakdown on a disagreement over the merger ratio which would have determined control of the new business.
Had they agreed, the deal would have created one of the world’s biggest food groups.
Kirin said in a statement it had been negotiating on the premise that the new entity would be managed as a listed company in order to ensure appropriate management independence and transparency. “However, it became apparent that Suntory held a different view on this matter.”
Suntory’s founding family owns 90% of the firm and were likely to have become the new company’s largest shareholder with a one-third stake.
The announcement that the deal was off led Kirin’s shares to fall 5%.
Kirin is the maker of Ichibanshibori beer and Afternoon Tea bottled drinks, while Suntory is known for its Premium Malt’s beer and Boss canned coffee.
Last year, Kirin and Suntory posted combined sales of beer, soft drinks and food of about $42.5-billion.