Japanese brewer Kirin Holdings and smaller unlisted rival Suntory Holdings are in talks to merge and create one of the world's largest beverage and food firms, the Nikkei business daily reported.
Kirin and Suntory are in talks to merge under a holding company with the aim of strengthening their operations in the mature Japanese market and accelerate expansion into growing overseas markets, the Nikkei said.
The two aim to agree on the deal this year, the newspaper said citing unnamed sources.
Kirin spokesman Yoshiki Yamashita said he could not comment on whether the two firms were in talks. He called the Nikkei report speculation and said it was not true the company had made any decisions on a capital or business alliance with Suntory.
Suntory spokeswoman Naoko Tada said she was checking on the report and could not immediately comment.
The merged firm would be the largest player in the Japanese beer and soft drink markets, and one of the biggest globally, with combined annual sales last year of 3.82 trillion yen ($US41 billion), the Nikkei said.
Kirin Holdings President Kazuyasu Kato and Suntory Holdings President Nobutada Saji met at the end of last year to initiate talks and they had informed some of their executives of the merger plan by early July, the Nikkei said.
The combined market share for beer products in Japan would have been roughly 50 per cent last year, putting them well ahead of Asahi Breweries at just under 38 per cent, the paper said.
Reuters
