Suntory and Kirin Merger Falls Through

Suntory's founding family owns 90% of the privately held firm and were likely to have become the new company's largest shareholder with a one-third stake.

8 Feb 2010 --- Kirin Holdings Company, Limited, which has been in merger negotiations with fellow Japanese food and beverage giant Suntory Holdings Limited has announced that the negotiations have been terminated.

Kirin 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, and Kirin determined that even if negotiations were to continue, they were unlikely to result in the establishment of a company that would fulfill Kirin's aim of developing as a leading global company and earn the understanding and approval of Kirin's domestic and overseas customers, employees, shareholders and other stakeholders. Kirin therefore resolved to terminate the negotiations.

Suntory's founding family owns 90% of the privately held 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 caused 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 $42.5bn.