M&A

11 November, 2009

Japan FTC asks for more info on Kirin-Suntory merger

TOKYO, Nov 11 (Reuters) - Japan's Fair Trade Commission said on Wednesday it had asked brewers Kirin Holdings (2503.T) and Suntory Holdings [SUNTH.UL] for additional information on their possible merger.

Kirin, locked in a fierce battle with Asahi Breweries (2502.T) for the No. 1 position in Japan's beer market, has said it would like to conclude merger talks with unlisted Suntory by the year's end or a little later.

The deal would create one of the world's largest beverage and food firms on par in revenue terms with U.S.-based Kraft Foods (KFT.N) and Pepsico Inc (PEP.N).

The combined company would control half of Japan's beer market and nearly 30 percent of its softdrink industry.

The two companies applied for a review by the country's competition watchdog. The FTC said it had asked for details including market size and estimates of demand.

A spokeswoman for Suntory declined to comment. Kirin officials were not immediately available for comment. (Reporting by Ritsuko Shimizu and Taiga Uranaka; Editing by Edwina Gibbs)

Source: http://www.reuters.com