Thursday, 10th September 2009
In Business In Japan,
Suntory considers buying soft drink firm
Japanese brewing firm Suntory has announced it is in discussions over a potential buyout of the Orangina firm.
Orangina is currently owned by private equity company Blackstone and Lion Capital, which acquired the orange soft drink company in 2005.
According to Bloomberg, an unidentified source said that Suntory, which is Japan's third-largest brewer, could finalise the purchase as early as this week.
Both Suntory and Blackstone have confirmed that talks are ongoing about a deal which could be worth $2.6 billion, reports suggested.
Orangina, which used to be owned by chocolate giant Cadbury's until the Blackstone and Lion Capital buyout, owns beverage brands Oasis and Schweppes and the La Casera and TriNa firms.
Suntory is reportedly keen to expand into the international drinks market, as consumer demand in its native Japan continues to be weak.
Overall, beer sales in Japan have fallen by around 15 per cent in volume over the past ten years.
Written by Kimberley Homer.