Heineken has confirmed that it’s in discussions to acquire the struggling Brazilian business of Japanese beverage group Kirin.
Brasil Kirin Holdings was created in 2011 with the $2 billion acquisition of Schincariol. It produces beers under brands including Schin, Baden Baden, Cerveja Cintra and Devassa.
In response to press speculation surrounding its takeover of Brasil Kirin, Heineken confirmed that it was in talks about a potential deal.
“These discussions are ongoing and there can be no certainty that an agreement will be reached,” the Dutch brewer added.
And Kirin released a statement that, while not denying the rumours, said that its primary focus remained on accelerating growth in its Brazilian subsidiary. But it admitted that ‘Kirin is also considering other alternatives’ including a strategic partnership and a potential sale of the business.
The company has lost market share in Brazil with sales down last year, while a weakened real raised the price of some raw materials, Reuters said.
Media in Japan reported that the deal could be worth ¥100 billion ($872 million).
Heineken first entered the Brazilian market with the acquisition of Femsa Cerveza in 2010, including all of Femsa’s Mexican beer operations as well as it US and other export businesses, in a deal that valued the company at €3.8 billion.
In August, Heineken agreed to acquire a brewery in the growing Vietnamese market from Carlsberg.
A year before, it had agreed to buy out Diageo’s minority stake in the South African and Namibian joint venture it launched seven years previous, taking its total share in DHN Drinks to 85%.
And last month, it announced that it had struck a £300 million deal to acquire more than half of Punch Taverns’ UK pub estate, making it the third largest pub operator in the country.
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