April 27 (Reuters) – Asahi Group Holdings Ltd is in
final negotiations with Ajinomoto Co to buy its
beverage unit Calpis Co in a deal that may be valued at around
100 billion yen ($1.24 billion), The Nikkei business daily
reported.
Asahi, which currently ranks fourth in the domestic
soft-drink market with a 9.9 percent share, would move up to the
third place with a 12.4 percent share after the deal, the paper
said.
An agreement on the deal — the biggest yet in Japan’s
soft-drink market — is likely to happen as early as next month,
the paper said.
Asahi would get Calpis’ brand power for lactic acid
beverages. It already collaborates with Calpis in vending
machines, the daily said.
Asahi’s soft-drink business is expected to generate sales of
about 342.7 billion yen this year, while operating profit is
seen at 16.5 billion yen, the business daily said.
The deal will take Asahi’s soft-drink sales to more than 450
billion yen and operating profit above 20 billion yen, the
Japanese daily said.
Earlier this month, Asahi was outbid by Molson Coors Brewing
Co in its attempt to buy eastern European brewer StarBev
from private equity firm CVC Capital Partners.
