Japan’s Kirin Sell­ing Brazil­ian Unit to Heineken

The Economic Times - - Around The World -

Tokyo: Ja­panese brewer Kirin said on Mon­day it would sell its Brazil­ian unit to Dutch beer giant Heineken for $706 mil­lion, cit­ing a “stag­nant and com­pet­i­tive” mar­ket. The com­pany said it will trans­fer all shares of Brasil Kirin Hold­ings to Heineken sub­sidiary Bavaria for 2.2 bil­lion re­als.

“Con­sid­er­ing var­i­ous risks as­so­ci­ated with (the) Brazil­ian econ­omy and (the) stag­nant and com­pet­i­tive sit­u­a­tion in (the) Brazil­ian beer and soft drink mar­kets, Kirin has come to the con­clu­sion that there are cer­tain lim­i­ta­tions in trans­form­ing Brasil Kirin into a sus­tain­able and high-prof­itable busi­ness on its own,” it said in a state­ment.

Sep­a­rately Kirin, which is look- ing to strengthen its pres­ence in the Asia-Ocea­nia re­gion, con­firmed plans to buy a ma­jor­ity stake in Myanmar’s Man­dalay Brew­ery for $4.33 mil­lion from mil­i­tary-backed Myanmar Eco­nomic Hold­ings.

The deal will give it con­trol of the coun­try’s old­est brew­ery, and 90% of Myanmar’s beer mar­ket, a com­pany spokes­woman said.

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