Japanese Brewers Consider Merger
Japanese brewers consider merger
Japanese brewing and food groups Kirin and Suntory are considering a merger.The move would create the world’s fifth-largest food group by sales, just behind Kraft Foods and Pepsico. Analysts welcomed the announcement, saying a merged firm would be able to dominate in Japan’s fiercely competitive food and drinks market. While Suntory is privately owned, shares in Kirin rose 8.4% following the news. If the two firms agree to merge, the deal will need regulatory approval. “If a merger is realised, that would give them the market share to take leadership in pricing and help their soft drinks businesses – a chronic weak spot in a ultra-competitive market,” said JP Morgan analyst Naomi Takagi. “It’s a huge positive if they can do it.”
Source:BBC
